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HE INDUSTRIAL AND PRODUCTION 
ENGINEERING SERVICE OF MILLER, 
FRANKLIN, BASSET & COMPANY. 
A DESCRIPTION OF THE WORK 
THEY DO, THEIR ORGANIZATION 
AND THEIR POLICIES, TOGETHER 
WITH MANY LETTERS FROM THEIR 
CLIENTS TELLING OF THE RESULTS 
THEY GET. 



MILLER, FRANKLIN, BASSET & CO. 
347 MADISON AVENUE 
NEW YORK 


-r'5« 

fA ^ 5 


Copyright 1820 

Miller, Franklin, Basset & Co. 
New York 


CCT 23 1220 

©CU6011U 


mo \ 


FOREWORD 


I NDUSTRIAL ENGINEERING still suffers from the mis¬ 
takes—some serious, some merely ridiculous—which its pio¬ 
neers made while developing the science of management. 

Since it is a comparatively new profession there are as yet no 
standards of excellence—as there are for lawyers and doctors— 
up to which an industrial engineer must measure before the 
authorities permit him to practice. There is nothing to pro¬ 
tect a manufacturer from the inexperienced “efficiency expert’' 
who happens to be a glib and convincing salesman. 

So mistakes are still being made by engineers whose work 
has taken them into only a plant or two, and who often have 
only a superficial knowledge of some of the more spectacular 
but less substantial work of the profession. 

The mistakes of the old timers and the failures of the present 
day cub engineers, are widely advertised. The successes—and 
there are many of them—are less widely told of. That is why 
so many manufacturers doubt that industrial engineers can help 
any but the worst managed factories, although there are several 
thousand able business men who have employed industrial en¬ 
gineers with success. 

Some are frankly afraid that an outside engineer would tie 
the business up in red tape and antagonize the whole organi¬ 
zation. And this skepticism and fear will be justified unless 
care is taken to employ engineers who can prove that they have 
practised their profession for many years and have successfully 
served many clients. 

This booklet is intended to show you just what work we, as 
industrial engineers, undertake to do for a client. We do not 
claim to work with magic. We are simply skilled in the science 
of management. But to tell you what we do, how we work, and 
how we train and supervise our men, is not enough. Nearly 
any one could say all that we can on these subjects. 

The wise business man wants proof that we have had wide 
experience and that our clients are pleased with the results we 
get for them. The proof, therefore, is presented in the form 
of letters written by our clients, mostly to people who later em¬ 
ployed us themselves. No names are given because we consider 
our relations with clients to be confidential. The writers of 
most of these letters, however, permit us to use their names. 
Such we will be glad to tell you, so that you can get a confidential 
opinion of us from them. 


T HIS is merely a list of the general industries in which we 
have worked. It is not in detail. For instance under 
“knitting” we might list underwear, sweaters, and knit cloth. 
Such a list would be too long. 


Machine Shops 

Iron and Steel Foundries 

Brass Foundries 

Rolling Mills 

Forge Shops 

Metal Stamping 

Plating 

Enameling 

Metal Spinning 

Glass 

Silverware 

Bleaching and Dyeing 

Rubber 

Candy 

Flour and Cereal Mills 


Knitting 

Spinning 

Textiles 

Garment Making 

Woodworking 

Cabinet Making 

Pottery 

Paper Making 

Chemicals 

Pharmaceuticals 

Leather Work 

Paint and Varnish 

Electrical Goods 

Canning 

Printing & Lithographing 


“Interdependence absolute, foreseen, ordained, decreed, 
“To work, ye'll note, at any tilt an ’ every rate of speed .” 


T HESE lines of Kipling’s express 
exactly what industrial engineering 
aims to secure in a business. 

But a smooth-running, trustworthy 
mechanism is not in itself the end that 
we, as industrial engineers, try to 
achieve for a client. Unless the client 
gets increased profits, lower costs and 
greater output, he will not prize an 
ingenious system. A system is merely 
a tool with which to make money—it is 
not, in itself, the goal. 

Industrial engineering concerns itself 
principally with the functions which are 
basic to all manufacturing; such as re¬ 
lations with workmen, costs, the plan¬ 
ning and control of production, means 
of executive control, and like matters. 

To increase profits for a client, how¬ 
ever, we must not only be specialists in 
one or more of these branches of indus¬ 
trial engineering. As engineers we know 
all of the best methods and are able to 
select and install the one best suited to 
the client’s need. In selecting the right 
method we consider all of the problems 
of the business as a whole—design of 
product, manufacturing, selling, finance, 
labor, management. It is surprising 
sometimes to find how closely two or 
more of these functions are intertwined. 
Seldom indeed can one be considered 
without reference to its effect on all of 
the others. 

More than once we have straightened 
out financial tangles by getting after 
snarled-up production. From among 
these instances we recall in particular 


one concern—considered quite modern 
in its methods—which was short of 
working capital. Our examination 
showed that approximately $4,000,000 
was lying on the shop floors in the 
shape of partly finished goods because 
the progress of material through the 
plant was slow and unplanned. We 
showed them how to plan production, 
we speeded up the movement of mate¬ 
rials and we increased the output of 
individual machines and men to such 
advantage that in eight months the 
“goods in progress” inventory was re¬ 
duced to about $1,000,000. Thus the 
$3,000,000 in cash which the company 
needed so badly was found in its own 
shop! And it goes without saying that 
the shipments increased considerably 
during this period. 

Then too, our work in a plant, es¬ 
pecially when we are developing cost 
figures, often leads us into the selling 
end and results in suggested changes in 
selling policies, methods and markets. 

These points are brought up simply 
to show that the successful industrial 
engineer must be much more than an 
engineer and that he must know a lot 
about business outside of the shop it¬ 
self. The broad view of business, which 
tests every method used and every 
change suggested with the question 
“Will it increase the profits of the busi¬ 
ness as a whole? ” is what we demand in 
our staff-members. 

It is thus apparent that we cannot 

advocate any set system, whether of 

(Continued on page 7) 


[ 5 ] 


WHAT OUR CLIENTS SAY 


A big spring manufacturer tells what u)e did 
for him in tons and dollars: 

“In May, 1915, we decided to do what 
had never before been done in the spring 
business, have a staff of efficiency en¬ 
gineers put in a definite cost system and, 
a definite efficient arrangement for the 
reduction of labor costs and the im¬ 
provement of our business in every way. 
It took fifteen months to bring about 
anything like the condition we hoped to 
have. 

“In May, 1916, we produced 2500 tons 
of springs, employing approximately 
1600 men with a profit of about $20,000. 
In May, 1917, one year later, and after 
the system had been working ten 
months, we produced 2500 tons of 
springs with 875 men at a profit of ap¬ 
proximately $100,000. 

“We recently put them to work in our 
Rim and Tube Division, formerly the 

.Welding Co. They have 

been working there about eight months 
and with wonderful results. To illus¬ 
trate: in February, 1917, we shipped 
$575,000 worth of goods from the Rim 
and Tube plant with a labor cost of 
$95,000. In August we shipped $910,- 
000 with a labor cost of $96,000. In 
September we shipped $826,000 with a 
labor cost of $88,000 and the improve¬ 
ment still goes on.” 

Worsted and woolen yarns: 

“The work they did here was more 
than satisfactory and it is a pleasure for 
us to say so. It paid for itself many 
times over in the satisfaction it brings 
to us in knowing that we have our busi¬ 
ness, in every detail, thoroughly in 
hand.” 


Two letters from a company that makes ele¬ 
vating and conveying machinery: 

“As for the satisfaction given by 
Miller, Franklin, Basset & Co. in making 
this installation — we can not say 
enough. We are more than pleased 
with their method of doing business 
with us, and the representatives they 
sent we regarded as extremely efficient in 
their method of accomplishing results.” 

“Responding to your favor of the 7th 
instant, would state that the fact that 
we have just engaged Miller, Franklin, 
Basset & Co. to install a routing system 
through our shops, at the same time to 
renovate and adjust to .present condi¬ 
tions the cost system which they put in 
for us four or five years ago, speaks for 
itself. We do not know as we can say 
more than that, after having had expe¬ 
rience with this company, we are now 
about to embark them on a much larger 
scheme of production engineering for 
our factory, than we had before.” 

Farm implements and heavy machinery: 

“Replying to your favor of the 6th, 
we feel that we can highly recommend 
the services of Miller, Franklin, Basset 
& Company. They were with us here 
about 11 months in the year 1911. 
Some time back, it is true, but we have I 
been using the systems they installed 
ever since, with, of course, improve¬ 
ments from time to time. That is one 
thing we admire about their methods, 
that they admit of continual improve¬ 
ment. They revised piece prices for us, 
they installed a complete cost system 
and production system, all of which 
have proved satisfactory.” 


16 ] 



OUR EXPERIENCE AND POLICY 


costs, wage payment or what not. We 
seldom see two concerns so alike, even 
in the same industry, that identically 
the same methods—say of gathering 
cost figures—will fit both. In fact, we 
so thoroughly believe in the often heard 
remark: “My business is different” that 
in one city we installed four substan¬ 
tially different cost systems in four 
plants turning out identical products. 
This, because the personnel of the man¬ 
agement and the form of organization 
of the four concerns were different. The 
plan which worked well in one would 
have caused friction had it been in¬ 
stalled in any one of the others. 

What we do bring to a client, instead 
of a set, patented system or theory, is 
an exhaustive knowledge of the methods 
which are working successfully in more 
than fifteen hundred factories, some 
in the same industry, some in others. 

The fact that a method is used in one 
industry is no valid reason that a varia¬ 
tion of it cannot sometimes be success¬ 
fully used in another. Because we deal 
with fundamental functions of business 
we are able to adapt methods from one 
industry to another. 

But we realize that to have knowl¬ 
edge of the specific problems of a special 
business is an aid to the industrial en¬ 
gineer. While principles of manage¬ 
ment are undoubtedly basic in all indus¬ 
tries, anyone who knows business at all 
knows that every concern differs from 
all others just as any man differs from 
every other man. A basic principle is 
that every man must eat—but all men 
cannot safely eat the same food. It is 
so with business. Any concern can 
get its greatest output only when pro¬ 


duction is planned, but the same meth¬ 
od of planning will not do for all. 

So, other things being equal, we claim 
that to get the best results the industrial 
engineer must be familiar with the pro¬ 
cessed and the peculiar conditions of an 
industry. If he doesn’t know them 
when he starts, he will have to learn 
them in the client’s plant. 

This is one reason for our success: 
we have had a wider range of expe¬ 
rience, we honestly believe, than any 
other organization of industrial and 
production engineers. 

There may be an industry outside of 
our experience, but it has been many 
years since we have encountered a staple 
industry in which we could not point to 
several concerns for which we have 
worked. 

On page 4 are listed under general 
titles, the industries with which we are 
familiar—those in which we have done 
work. To list every article we have 
helped to make would be impossible. 
For example, “pottery” might be sub¬ 
divided into sanitary ware, insulators, 
spark-plugs and other kiln-fired clay 
products, for we have worked in fac¬ 
tories making many different clay ar¬ 
ticles. Or take “woodworking.” We 
have had as clients manufacturers of 
cabinet-work, airplanes, wagons and 
carriages, game-boards, spools, motor- 
boats, interior trim and street-cars,— 
and so on throughout the entire list of 
major and minor industries. 

Scattered through this book are quo¬ 
tations from letters written by clients 
we have served. Almost all of these let¬ 
ters were written to prospective clients 

who had inquired about us from con- 

(Continued on page 9) 


[ 7 ] 


WHAT OUR CLIENTS SAY 


A successful manufacturer of spikes and 
other track material: 

“In reply to your letter beg to say 
that a representative of Miller, Franklin, 
Basset & Co. about eight years ago, 
made a preliminary report for us on con¬ 
ditions in our business as he saw them, 
and recommendations for a revised cost 
system, greater efficiency, and more 
economical methods. After considering 
the report, we arranged for his services, 
to put some of his suggestions into 
effect. 

“In a very short time he had a com¬ 
prehensive and intelligent grasp of our 
business and methods, which he ac¬ 
quired without antagonizing those he 
came in contact with. Some of our 
practice he thought it inadvisable to 
change, because the possible benefits 
would not justify doing so. In others, 
radical changes were made to bring out 
information which we had not pre¬ 
viously been getting. 

“The work of installation was per¬ 
formed conscientiously, rapidly, intel¬ 
ligently, and along common sense lines, 
and concluded in the latter part of 1909, 
and the system installed at that time has 
been in constant use since, we having 
made only minor changes to meet 
changing conditions. 

“Their work has proved entirely sat¬ 
isfactory; their charges were within rea¬ 
son for the work performed, and in our 
experience they were reasonably con¬ 
servative in their statements regarding 
the results they could accomplish. We 
consider the money paid them a good 
investment.” 

This man has since employed us to do 
v cork in another of his plants. 


Lace curtains are not out of our sphere, as 
these two letters evidence: 

“I can heartily recommend them to 
any one requiring to know the true 
facts concerning his own business, 
viewed from the standpoint of the un¬ 
prejudiced observer.” 

“They made an exhaustive study of all 
of our problems and the results which 
they have obtained are not only sur¬ 
prising in many particulars, but enable 
us to keep a close track from month to 
month of the profit or loss incurred the 
previous thirty days. 

“I can most heartily recommend these 
people to anyone requiring highly spe¬ 
cialized information as to the operation 
of any business.” 

Buttons: 

“They have done work for us at va¬ 
rious times and to our full satisfaction. 
We believe that the organization is able 
to give intelligent and sound advice. 
Above all, we feel that they are thor¬ 
oughly reliable. We emphasize this 
point because there are probably a good 
many so-called efficiency engineers who 
are not reliable and who may be guilty 
of experimenting. We esteem Miller, 
Franklin, Basset & Company highly.” 

Bleachers , dyers and finishers of cotton 
piece-goods: 

“We consider the service they ren¬ 
dered us in this connection to have been 
most intelligently handled and we could 
not, I believe, have gotten the same 
result from another similar concern 
more quickly at less cost or more satis¬ 
faction.” 




[ 8 ] 


THE SCOPE OF OUR WORK 


cerns we have served. Some of the re¬ 
plies were shown to us. These are not 
chosen to show excellence in any special 
line, but to show how we are thought of 
by those we have served. If among 
them you do not find one from your 
industry, write us, for it is safe to say 
that we can refer you to clients in your 
particular branch of industry. 

The work we do for manufacturers 
may be classified as of eight kinds: 

1 Production planning 

2 Cost accounting 

3 Method 

4 Time study 

5 Wage incentive 

6 Physical arrangement of the 
plant 

7 Eliminating material wastes 

8 Organization 

You may be surprised not to find 
listed an “industrial relations” service. 

We have already indicated that no 
cut-and-dried methods exist which can 
be effectively applied to any phase of 
manufacturing. Least of all will a pack¬ 
age of any patented salve relieve labor 
troubles, for here, more than any place 
else, the symptoms are different. 

Not that we neglect the workmen. 
On the contrary. We have always 
realized and practised what many are 
only now discovering. That is, that to 
be most successful a business must rest 
upon a foundation of fairly-treated, con¬ 
tended workers who have a real interest 
in their day’s work. 

We have proved that the manage¬ 
ment can usually get co-operation from 


the men by arousing the creative in¬ 
stinct. Certainly it has become clear 
that co-operation cannot be bought 
with higher wages alone. In many 
plants, however, intelligent co-opera¬ 
tion with the management in increasing 
production and decreasing costs has 
followed when the interest of the men in 
the business hals been properly stimu¬ 
lated and encouraged. 

Whatever our activity for a client, we 
consider the workmen. 

For instance, in setting piece rates or 
standard times, where production is 
increased, we make it a point that the 
workmen’s wage also be increased. 

In this way, we are able in setting 
piece rates, not only to avoid antago¬ 
nism, but actually to arouse the work¬ 
men’s interest. A case in point oc¬ 
curred a few years back. We showed a 
workman how to handle his work so 
that he was able to turn out ten as¬ 
semblies in place of the four which had 
been his ordinary day’s output. 

The workman thought that a new 
rate of thirty-five cents would be right 
for the assemblies under the improved 
methods. We made the rate forty 
cents, so that if he made ten a day he 
would earn eighty cents more than un¬ 
der the old schedule. Within a short 
time he was averaging thirteen a day, 
and with much less effort and fatigue 
than before—furthermore he was con¬ 
stantly on the lookout for ways further 
to increase his production without affect¬ 
ing its quality. 

Also in planning production we con¬ 
sider the workman. We show him how, 
by assuring him a continuous supply 
of materials to work on, his earnings 

(Continued on page 11) 


[ 9 ] 


WHAT OUR CLIENTS SAY 


Here is a letter from an eastern envelope 
manufacturer: 

“Feeling that possibly you might like 
to know how the work that you did for 
us six or seven years ago has benefited 
us, would say that we are very much 
pleased with it. It has enabled us to 
keep our costs perfectly and with very 
little expense. It has enabled us to put 
certain economic plans in operation in 
our factory, which have been most 
beneficial to us, and in actual experience 
it has done for us all that you claimed it 
would, and we are entirely satisfied with 
the work you did. ” 

From a pottery manufacturer: 

“Not only does this company know 
its business, but they take care of it in 
such a nice way that if you employ them 
you will be sorry when they are through; 
that is if they now have the same men 
in their organization that they had 
when they were doing our work, which 
was before the war. 

'‘We thank you for writing us because 
we are pleased to recommend anyone of 
such high grade as Miller, Franklin, 
Basset & Company.” 

Another machine tool manufacturer: 

“They were the concern that estab¬ 
lished for the writer a uniform cost sys¬ 
tem for the association. When we 
planned to put in a cost system at our 
place, we naturally thought of them for 
the good work they had done for the 
industry. They installed a system for 
us that has proved very satisfactory in¬ 
deed and we have found them espe¬ 
cially reliable in doing exactly as they 
promise.” 


From a New England manufacturer of bas¬ 
kets and veneer boxes: 

“Several years ago Miller, Franklin, 
Basset & Co. installed a cost system 
for us and we have been very well sat¬ 
isfied with its operation since that time. 
We consider them honest and reliab 1 
and well posted on this class of work and 
think you would make no mistake in 
employing them in whatever capacity 
you have in mind. ” 

Knitwear: 

“With further reference to your letter 
of November 7th, we have employed the 
services of Miller, Franklin, Basset and 
Company for several years, having en¬ 
gaged their services for auditing and 
production work. As evidence of what 
we think of their work, we have recently 
engaged them to do some special cost 
work for us.” 

Opinion of a firm of New York engineers: 

“Would say that we have used the 
services of Miller, Franklin, Basset & 
Company as consulting accountants 
and have found them capable and sat¬ 
isfactory in every way. Aside from this 
the personality of the chiefs as well as of 
the subordinates made it a pleasure in¬ 
deed for us to do business with these' 
gentlemen.” 

A middle-west oil and gas-well supply man¬ 
ufacturing company: 

“We beg to advise that a few years 
ago we employed Miller, Franklin, 
Basset & Company on some efficiency 
work in our factory. The work was 
done in a satisfactory manner and with 
good results.” 





THE PLANNING OF PRODUCTION 


will not be cut down because of delays 
due to the fault of the management. 

By explaining to a workman how each 
move affects him, we have found that 
the management can usually arouse his 
interest. 

There are only two things a man can 
get from his labor—the satisfaction of 
instincts, and money. If you take away 
the first, it is no wonder that he asks 
for more of the other. 

That the interest of the worker can be 
aroused is shown by innumerable ex¬ 
periences we have had—one has already 
been cited. 

One way to revive interest in the 
work is to give the men in some measure, 
a voice in the matters that concern 
them. Properly worked out, this un¬ 
doubtedly achieves beneficial results. 

To a greater or less degree, workers 
have been given representation in more 
than a hundred American factories. In 
all but two or three of these the plan has 
been successful. The failures are easily 
explained: they have in almost every 
case been due to poor judgment on the 
part of the management. 

We outline under the heading “Or¬ 
ganization” on page 35, the methods 
we have found most effective in hand¬ 
ling workers’ representation. 

Thus, whether or not the ultimate 
idea is to achieve workers’ representa¬ 
tion, ‘"industrial relations” work runs 
through all of our efforts in the client’s 
behalf. We do not make it a thing 
apart: we weave it into whatever meth¬ 
ods we install so that it becomes a 
part of each day’s work. No matter 
which of the eight types of work we are 
doing in a plant we keep in mind that 


any system involves the men in some 
way and is dependent for success upon 
their interest and approbation. 

I N the following pages we describe in 
detail the eight different kinds of 
work we do. It should not be assumed 
that these are discussed in the order of 
their importance. That would be im¬ 
possible, for each is of chief importance 
to the concern which is weak in that 
particular function of management. 

One concern, for instance, may know 
its costs accurately but be suffering from 
slow turnover of capital due to hitches 
in production. For this firm we could 
perhaps do little to improve the cost 
system, but could probably save thou¬ 
sands of dollars by installing a system 
by which production could be planned. 
For this concern, production planning 
is the most important thing we do. 

The following more or less detailed 
description will give you a comprehen¬ 
sive idea of our activities as industrial 
and production engineers. 

1 Production Planning 

Production planning aims to get the 
maximum amount of output shipped 
from the plant in the shortest possible 
time and with a minimum investment 
in raw material, partly finished goods 
and finished goods. We frequently are 
able to release from the business a large 
amount of cash working capital which 
has been tied up in inventories, even 
though the sales may increase. Some¬ 
times when additional factory buildings 
seem needed to provide production ca¬ 
pacity to meet increasing sales, a plan- 

(Continued on page IS) 


[ii] 




WHAT OUR CLIENTS SAY 


Machines and tools for sheet-metal wor 

"Answering your inquiry of Sep¬ 
tember the 4th, would say that Miller, 
Franklin, Basset & Company’s work 
here and their dealings with us were 
100% satisfactory. They installed a 
system of cost keeping and factory 
control that we believe the best possible 
arrangement for our particular needs, 
and a source of profit as well as satis¬ 
faction to ourselves.” 

Engineers—designers of cement factories: 

"We were entirely satisfied with the 
services of Miller, Franklin, Basset &Co., 
whom we consulted regarding a system 
of accounts for our shop, laid out by 
our treasurer. The services in reality 
amounted to only two or three days of 
inspection and investigation and ended 
in their approval of the system devised 
by ourselves. From this you will see 
that the matter was a small one, but 
during the discussion we were much 
impressed with their ability, knowledge 
and common sense, as well as the 
pleasing character of the personnel. 

Should we have any further business 
in their line, we would go directly to 
them with it.” 

What a manufacturer of transmissions , gears 
and differentials says: 

"Indeed you have our permission to 
republish the article about our planning 
system, mentioning our name if you 
wish to. The results as you have out¬ 
lined them are, if anything, less striking 
than the ones we have actually gotten 
from planning our production. In this 
connection, we might add that we felt 
our effective production and planning 


system helped us a great deal during the 
troublesome steel and railroad situation, ■ 
during the past months. We suffered, ] 
of course, to some extent through the 
the switchmen’s tie-up of freight traffic, 
and it is of course not ended but we 
have many reasons for believing that I 
our condition was greatly helped through 
our effective production system. 

I I 

"Another point which pleased us im¬ 
mensely was that the installation was 
made by your engineers without in the 
least antagonizing anybody in our con- • 
cern. I think this is worthy of note be¬ 
cause when such fundamental changes 
in production methods are made, some¬ 
body’s toes are nearly certain to be step¬ 
ped on, yet everything went smoothly 
and without friction. 

"It is very important, of course, that 
there be the right understanding at the 
outset as to what the outside engineers 
are to do and what the management of 
the plant in which the installation is be¬ 
ing made is to do. Thorough under¬ 
standing and co-operation are necessary. 
This must receive full support from not 
only the general management but from 
the plant management and the produc¬ 
tion head in the factory in question.” 

Knit goods manufacturer: 

"There is no question but what Miller, 
Franklin, Basset & Company have the 
best cost and production system for the 
knitted textile industry, and their suc¬ 
cess with us in our Association work has 
been little short of phenomenal. 

"If you wish further information re¬ 
garding them or the extremely beneficial 
work which they have done for us, we 
will be glad to tell you.” 


THE PLANNING OF PRODUCTION 


ning system will give the needed capaci¬ 
ty without building. 

Sales are often lost because the plant 
cannot make quick deliveries or keep 
delivery promises. Planning produc¬ 
tion will almost invariably overcome 
both of these handicaps. 

When installing a system of produc¬ 
tion planning, we usually find it neces¬ 
sary to take up the following points: 

What to make is the starting-point. 
The accuracy with which this can be 
known points out the particular pro¬ 
duction planning methods that will 
give the best results. A wide experi¬ 
ence with different methods of produc¬ 
tion planning enables us correctly to 
diagnose each particular case and apply 
the most effective method. 

When to make it. It is highly important 
to determine when to start each item 
in an order or assembly so that all parts 
will reach the assembly room or shipping 
room at the same time. Correctly 
determined, the inventory of work in 
process and finished parts will be reduced. 

The amount of seasonable stocks which 
should be carried, when the articles 
manufactured are affected by style 
changes or do not keep well, not only 
has a bearing on economical production 
but may be a vital factor in making the 
business profitable. 

Where maximum and minimum limits 
have to be set we provide means of au¬ 
tomatic increase or decrease of such 
limits as demand indicates. 

Control of production , after starting an 
order or part in the factory, is necessary 
to secure the best results from the plan¬ 
ning of production. Only experience and 


knowledge of conditions can avoid use¬ 
less red tape and rigidity on the one 
hand, and ineffectiveness on the other. 

Shop orders and instructions to the shop 
and to the workmen are essential if the 
executives are to retain control of pro¬ 
duction. We determine the simplest 
form in which to issue orders and in¬ 
structions effectively. So far as reason¬ 
able they are standardized; and we also 
determine the best method of handling 
them. 

Analysis of orders is necessary in order 
to determine the time required by each 
machine or department to complete its 
operation on particular parts. Prop¬ 
erly done this analysis prevents con¬ 
gestion in the plant and at the same 
time assures each department and 
machine enough work to keep it con¬ 
tinuously and profitably busy. 

Continuous runs for machines eliminate 
the time otherwise lost in setting up and 
taking down the tooling. Planning 
ahead makes it possible to group the 
various sales orders calling for identical 
operations so that this wasted time is 
saved. Often as much as 30% to 50% 
of a machine’s time is lost because of 
changes in the set-up brought about by 
haphazard manufacturing. 

Machine rotation. Many shops have 
laid so much stress on continuous run of 
machines on a single set-up that shop 
and storerooms become congested and 
deliveries delayed. Sometimes it pays 
to break down the tooling and put the 
machines on other work. 

Overpurchasing and overmaking. Means 
to prevent these very expensive 
faults are of primary importance, par- 

(Continued on page 15) 


[ 13] 


{! 


WHAT OUR CLIENTS SAY 


A machine company in Massachusetts: 

“We are glad to say, in reply to your 
favor of the 6th, that the work done for 
us by Miller, Franklin, Basset and 
Company is highly satisfactory. 

“This system has resulted in our 
being able to have complete grasp of our 
situation. We get absolutely the cost 
of our products and it enables us to 
locate the weak spots. We also get an 
analyzed report each month of the re¬ 
sults obtained in each department. 

“We believe that the introduction of 
this system can result only in benefit, 
and we are glad to recommend it to 
you.” 

Perforated metal: 

“Replying to your letter 7th inst., beg 
to say that services rendered us by Mil¬ 
ler, Franklin, Basset & Co. in connec¬ 
tion with the installation of our cost 
system are entirely satisfactory, and we 
look upon them as absolutely respon¬ 
sible people. If you are looking for 
expert advice and service, we believe 
that they can offer you every advantage 
that any other reliable company could 
give." 

Underwear: 

“Answering yours of the 22nd, Miller, 
Franklin, Basset & Company worked in 
our plant about a year installing a cost 
system and investigating our manu¬ 
facturing conditions, and we found their 
work highly satisfactory, and the expen¬ 
diture was fully justified by the results. 

“ They are fine people to do business 
with, are thoroughly competent, and we 
take pleasure in recommending them 
highly to you." 


Two letters from a collar manufacturer; the 
first was written seven years after the in¬ 
stallation, the second ten years after: 

“Would advise relative to the matter 
of which you write, that Miller, Frank¬ 
lin, Basset, & Co. installed a cost system 
for us some seven years ago, and their 
services proved entirely satisfactory, 
and it is our opinion that the work has 
paid for itself." . j 

“Replying to your letter to our Mr. 

.would advise at his request 

that Miller, Franklin, Basset & Co. did 
quite some work for us ten years ago, 
among other things installing a com¬ 
plete cost system, also revising our 
production end. Their installation is 
still in actual service and has proved 
satisfactory from the start, the results 
we are obtaining fully warranting the 
outlay of the expense." j 

This company mah.es gloves: 

“We have employed Miller, Franklin, 
Basset & Co. as auditors and efficiency 
engineers at different times and the 
service they have rendered us has been 
satisfactory. Their work is very thor¬ 
ough and we would not hesitate to rec¬ 
ommend them to anyone wishing the 
kind of service that they can render." 

A carriage company: 

“We have your favor of the 30th ult., 
and are pleased to give our testimony 
to the efficiency and dispatch with 
which you investigated our business 
methods. At the time we were pleased 
with your recommendation and the 
intervening years have testified to the 
wisdom of your recommendation." 


[14] 


H 




THE PLANNING OF PRODUCTION 


ticularly in lines where changes in style 
or engineering advancement may make 
the overproduction valueless. Every 
shop has its “morgue” of things it 
wishes it hadn’t made. 

Spoiled work must be quickly replaced 
or production will be held up while new 
parts are made. Spoilage may be 
planned for and provision for it should 
be made. This is especially important 
where the assembly of numerous parts 
into a complete product may be delayed 
by a single part spoiled in process. 

Providing work ahead for each man en¬ 
ables him to keep busy on productive 
work instead of losing time waiting for 
work or tools. Usually it is advisable 
to have the man’s next job taken to him 
together with the necessary tools and 
instructions. This not only saves time 
he would otherwise spend idly or in 
hunting up his own work or tools, but 
enables him to make certain that the 
tools are those he should use. Often 

10% or more of a man’s time is wasted 

% 

through lack of planning. Tools kept 
in condition make for good and rapid 
work, but as a rule the workman should 
not be allowed to sharpen or repair his 
own tools. This can better be planned 
for and done by the tool department. 

Flexibility of production must be pro¬ 
vided. Emergencies are bound to oc¬ 
cur by which the plant may be com¬ 
pletely upset if the planning is too rigid. 
Sometimes the question is asked “But 
what’s the use of planning when some¬ 
thing unforeseen may knock your plans 
/ 

to pieces?” The answer is that only a 
small part—usually less than 10%—of 
production is out of the ordinary, so 


why not plan the remaining 90% and 
allow for the 10 %? Unplanned, pro¬ 
duction is all on an emergency basis, as 
is evident from the furor and uproar 
which is the normal condition in plants 
where the work is not planned. We 
never install production planning meth¬ 
ods so rigidly that emergencies cannot 
be satisfactorily handled. 

Emergencies can usually be minimized 
by analyzing the causes that interfere 
with the execution of plans. Thus we 
reduce these causes to a half dozen or so 
and can to a degree guard against their 
occurrence and recurrence. 

Storage of parts or assemblies is a prob¬ 
lem which is worth solving. Some¬ 
times it is best to keep the articles in 
stock completely assembled and ready 
to ship. Or again it may be best to 
keep the finished parts in stock ready to 
be assembled on order. Storing of sub- 
assemblies may give the best results. 
Many factors enter into the solution of 
this problem which must be considered 
for the individual plant. The arrange¬ 
ment of parts in the storerooms may 
also be standardized to save space; to 
facilitate the finding of materials; to 
simplify the work of taking inventory; 
and to reduce the force of clerks. 

Shop load. We provide means to de¬ 
termine how much work there is ahead 
of each department or each class of 
machines. This is important in order 
to give warning well in advance whether 
to lay off or take on men, when and 
where it will be necessary to run over¬ 
time, and what kind of work we will 
need and when we will need it to keep 

all machines equally busy. 

(Continued on page 17) 


[ 15] 


WHAT OUR CLIENTS SAY 




Four letters from a manufacturer of sheetings 
and bed spreads: 

“We recommended the concern to two 
of our competitors and we understand 
that the cost systems installed for them 
by Miller, Franklin, Basset & Company 
have been very satisfactory. On ac¬ 
count of the service they have rendered 
us and our friends, we feel that we can 
unqualifiedly recommend them to any¬ 
one who needs services in their line. ” 

“I believe they are a highly reliable 
and up-to-date concern and I am sure 
any work they do will prove satisfac¬ 
tory.” 

“This is to certify that Miller, Frank¬ 
lin, Basset & Co. of New York in¬ 
stalled a cost system in our mills some 
eight years ago, since which time we 
have operated under the same and 
have found it efficient and capable of 
furnishing us with the information de¬ 
sired. We have tested this system out 
in various ways during the years it has 
been in operation and have come to feel 
that it is accurate and can be depended 
upon to give us the exact cost of our 
goods. We, therefore, feel that the 
work they did for us was extremely 
valuable and we recommend them to 
any one who needs such service as a 
highly efficient and thoroughly satis¬ 
factory concern to do business with.” 

“In reply to your letter of the 1st 
inquiring as to our experience with 
Miller, Franklin, Basset & Co., 1 beg to 
advise that over eight years ago they 
installed in our plant a cost system 
which has been in constant operation 


since that time. During this period we 
have had occasion to test it out in va¬ 
rious ways to prove its efficiency and 
correctness and it is a pleasure to say 
that in every instance we have found it 
was giving accurate results. In my 
opinion this concern is well organized 
and thoroughly capable of fulfilling any 
undertaking in their line which they 
engage upon. If your experience proves 
the same as ours, you will find nothing 
to condemn but much to commend in 

the sendee which they render you.” 

' • 

Knit goods: 

“This work was done last year in our 
yarn mill and we were very much 
pleased with results. They are now 
working on a new system for our knit¬ 
ting mill and of course what the result 
will be it is too early to say, but we 
expect that it will be good. At any rate 
they have saved us considerable money 
in the yarn mill—more than enough to 
pay for the work they did for us. We 
feel sure that they will do equally as well 
in our knitting mill.” 

Importers and wholesale grocers: 

“In reply to your inquiry on Miller, 

Franklin, Basset & Co., our Mr. 

has directed the writer to inform you 
that we have always found this concern 
to be highly satisfactory in every respect. 
We accordingly take pleasure in recom¬ 
mending them.” 

A well-known rubber company: 

“In answer to your favor of the 15th, 
have to say that the services rendered 
by Miller, Franklin, Basset & Co. were 
very satisfactory to us.” 



GETTING ACCURATE COST FIGURES 


2 Cost Accounting Methods 

Cost accounting methods are necessary to 
the economically run business. They 
are valuable not only as a guide in set¬ 
ting selling prices, but a3 indicators of 
efficiency in the various departments. 
By watching month to month fluctua¬ 
tions in the cost of labor, material and 
overhead, the forceful executive is given 
a method of control which is a powerful 
means of increasing efficiency. 

To the selling end of the business, too, 
cost figures are often of considerable 
value in indicating which lines may be 
pushed to best advantage, which mar¬ 
kets are most profitable and so on. In 
several instances, cost figures which we 
have developed have shown that sup¬ 
posedly profitable goods have really 
been sold at a loss, and the changes of 
selling and manufacturing policy which 
resulted have turned unprofitable busi¬ 
nesses into profitable ones. 

Here are some of the advantages of a 
correctly designed cost system: 

The basis on which costs are figured de¬ 
termines to a great degree the accuracy 
of the costs. Sometimes the figures 
must be so gathered as to give the cost 
of the article or lot. Better control of 
operations results if the costs are gath¬ 
ered by departments or operations. 
Sometimes, however, the clerical ex¬ 
pense of this method is greater than the 
benefits warrant. The peculiarities of 
each industry, of each plant, in fact, will 
govern. Not only the accuracy of 
costs, but the clerical labor involved in 
getting them, depends to a very great 
degree upon the correct choice of a 
cost basis. 


Reports for the executive , such as time 
reports, comparative labor cost records, 
and comparative material cost records, 
may be obtained in the process of 
gathering costs. These are of utmost 
value in controlling operations. 

Accurate distribution of such items as 
power, heat, light, depreciation, taxes, 
and so forth to the various departments, 
is an early step in cost finding, which 
if incorrectly done will throw the result¬ 
ing cost figures off so much as to make 
them valueless. 

General and departmental expense must 
be correctly distributed over the prod¬ 
uct. This is the major cost problem in 
most industries and the one least often 
correctly solved. If incorrect, cost 
figures are worse than useless. At the 
same time, the distribution must be 
effected without too much effort. The 
value of exact, minute figures must be 
balanced against the cost of the clerical 
effort required to get them. 

Monthly and periodical records of over¬ 
head expense, itemized and compared 
with those of other periods, quickly 
obtained, give a clear picture of the 
tendencies of a business. 

Tying up costs with the general books is 
easily possible, although not often 
achieved. The value of having this 
check on the operations of the business 
will be obvious. All of our installations 
have this feature. 

A monthly profit or loss by classes of 
product manufactured is always avail¬ 
able from our installations. Such state¬ 
ments are of the utmost value to the 
executive who dictates the manufactur¬ 
ing and selling policies of a concern. 

{Continued on page 19) 


[ 17] 


WHAT OUR CLIENTS SAT 


Builders of special machinery. 

‘‘Miller, Franklin, Basset & Co. have 
since been just as interested in the 
working of the cost system which Mr. 
Franklin introduced and have now and 
again suggested changes to meet vary¬ 
ing conditions, having advised us that 
this was a part of their service. To any 
concern in need of a cost system, or 
desiring to improve an older system, we 
feel that with our experience and the 
service we have received we should like 
very much to recommend Miller, Frank¬ 
lin, Basset & Company. 

“We now feel that we certainly could 
not do business without their system or 
something equal to it. There is no 
question in our minds but what the 
cost has been returned to us many 
times over.” 

Steel tubing and special shapes , railroad 
track material: 

“Their work was good. They took 
the plant which had practically no sys¬ 
tem and left it with one which we con¬ 
sider very well adapted to our needs and 
one which is run remarkably cheaply. 
Their fundamental scheme of an ‘ex¬ 
pense analysis’ made before the books 
are closed, is, I believe, the best por¬ 
trayal of expenses that can be made up 
and it alone has been worth all that we 
paid them.” 

A glove manufacturer: 

“We are pleased to advise you that 
the service which Miller, Franklin, 
Basset & Company rendered us was 
highly satisfactory and we have no 
hesitancy in recommending this firm 
to you for any work of this nature.” 


Bleachers , dyers and finishers: 

“Replying to your inquiry of the 1st 
instant, in reference to the value of the 
work done for us by Miller, Franklin, 
Basset & Co. of New York, we beg to ad¬ 
vise that these people, about four years 
ago, revised our entire cost system, and 
the work was well done and thoroughly 
satisfactory. In proof of this, we are 
using to day with satisfaction the system 
which they installed for us.” 

Automobile parts: 

“Replying to yours regarding Miller, 
Franklin, Basset and Company, beg to 
say that they have done some efficiency 

work for us in our.Division for 

the past two years and the work has 
been most excellent. We think enough 
of them to have them work for us in 
other divisions, which they are now 
doing. We have found them capable 
and honest.” 

Here is a letter from a manufacturer of light 
machinery: 

“Replying to your letter of the 15th 
instant, would say that we have done 
business with Miller, Franklin, Bas¬ 
set & Company for a number of years 
and have found their services entirely 
satisfactory.” 

A nationally k^own garter manufacturer 
writes: 

“We regard them as very competent 
people and the men they sent here were 
courteous and efficient and we have no 
hesitancy in saying that, given the room 
and facilities for developing their plans 
in the way they would like, they can 
produce satisfactory results.” 



ELIMINATING RED TAPE 


Sales expense by territories or by sales¬ 
men, where desired and warranted, can 
be made a feature of a cost system, so 
that the efficiency of a salesman may be 
measured by the profits he makes rather 
than by his gross sales. This often 
suggests that certain territories be 
dropped, or that sales in some territo¬ 
ries be handled in another way. Sur¬ 
prising results have been obtained by 
paying salesmen on a basis of profits 
rather than of sales. 

The cost units in use are sometimes in¬ 
correctly chosen, which results in diffi¬ 
cult or impossible cost reporting. Our 
experience enables us, after an investi¬ 
gation of your peculiar conditions, to 
select those units which will, at the least 
expense, give accurate costs. 

The estimating department is often really 
a “guessing department” unless costs 
are reported to it in such form as to be 
of use in the future estimating. We not 
only co-ordinate the cost and estimating 
departments but establish a method for 
checking the actual costs with the esti¬ 
mated costs. 

The payroll analysis which is a part of 
every effective cost system indicates the 
activity of departments, fluctuations of 
wage rates and the varying relations be¬ 
tween productive and nonproductive 
labor in each department. The latter 
is an accurate indication of the value of 
foremen. These reports also give a 
knowledge of labor turnover. 

3 Method 

While methods of handling routine may 
seem of slight importance, they are 
really the first steps toward efficiency in 


management. Method aims to prevent 
leakage and waste by doing things in an 
orderly and systematic way, and by 
bringing to executive attention the 
sources of waste by means of timely and 
regular statistical reports. 

% 

It must be flexible to allow for further 
growth and to avoid stifling of initiative, 
but most of all it must be fitted to the 
factory. Long and varied experience 
has shown us that, while the prin¬ 
ciples are the same, no one fixed form of 
system is applicable to any two fac¬ 
tories, although they may be manufac¬ 
turing an identical product. 

In listing a few essential points of our 
methods we do not pretend to outline 
all; nor do we claim that every factory 
requires a system embracing them all. 
We simply present several factors that 
deserve consideration and attention 
because they are representative of the 
needs of different concerns in various 
industries. 

Purchasing department routine is essen¬ 
tial to maximum output, for an entire 
order may readily be held up for lack of 
a very minor part. Some concerns still 
consider the purchasing department’s 
chief duty to be to get the lowest pos¬ 
sible price. As a matter of fact, this 
must not be overlooked, but the depart¬ 
ment must be so organized that deliv¬ 
eries will assuredly be on time. 

The routine best adapted to mo3t 
plants, experience has shown, comprises 
some form of requisition on the pur¬ 
chasing department; a purchase order 
with follow-up to prevent holding up 
production for lack of material; a price 

record which lessens dependence upon 

(Continued on page 21) 


[19] 


WHAT OUR CLIENTS SAY 


Military goods: 

“Answering your inquiry of June 1st, 
Miller, Franklin,Basset & Company, of 
New York, were employed by this com¬ 
pany during the year 1909, to suggest 
improved methods in our cost account¬ 
ing, expense analysis, etc., especially 
with reference to our manufacturing 
departments. 

“The new system was put into opera¬ 
tion practically as advised by them, and 
is still in use. 

“The principal benefit we have derived 
from it has been that we now have more 
convenient detailed and accurate anal¬ 
ysis of overhead charges in manufac¬ 
turing and general expenses in sales 
departments. 

“In our judgment, this is valuable in¬ 
formation and worth what it costs, 
providing it is followed up and made 
use of. 

“Their representative, who was with 
us off and on during the whole year, was 
efficient and most conscientious in his 
work.” 

Boxes: 

“We are pleased to advise you that 
the cost system installed in our plant 
some few years ago by Miller, Franklin, 
Basset & Co. has proved quite success¬ 
ful and their work was satisfactory and 
in our opinion it has well paid us for the 
expense of installing the system.” 

A switch and signal company said: 

“Miller, Franklin, Basset & Company 
rendered our Company services of great 
value. We consider them second to 
none in their line of business in this 
country.” 


Lathes and other wood-wording machinery: 

“Acknowledging your letter of the 1st 
inst. Miller, Franklin, Basset & Co. 
have done considerable work for us dur¬ 
ing the past four or five years, al¬ 
ways with satisfactory results. In fact 
we have been working to greatly en¬ 
hanced advantage since putting in their 
cost system which was installed in 
1909. 

“ We feel entirely safe in recommend¬ 
ing them to your favorable considera¬ 
tion.” 

Injectors , steam specialties and lubricating 
devices: 

“We consider the money that we 
spent with Miller, Franklin, Basset & 
Company in installing our cost and 
profit and loss systems well spent and 
can recommend them very highly to 
anyone needing such services.” 

A manufacturer of electrical machinery: 

“They have greatly improved our 
methods in handling production and the 
financial part of the system which they 
installed we do not think can be beaten. 

“We are very much satisfied with 
their services and think you will make 
no mistake in employing them in any 
work requiring the establishment of an 
up-to-date manufacturing system.” 

Knit underwear: 

“Replying to your favor of the 9th, 
beg to advise we have had Miller, 
Franklin, Basset & Company go over 
our mill records and establish a cost sys¬ 
tem. So far it seems to have worked 
out very satisfactorily and we are well 
pleased with their work.” 





[20] 


REPORTS AND RECORDS FOR EXECUTIVES 


the individual seller and which reduces 
the time needed to take inventory; an 
immediate notification to the depart¬ 
ments concerned when material is 
received; securing correct weights and 
counts of purchased material; a check 
on quality; and a means for promptly 
checking and paying invoices. 

Perpetual inventories may be kept in 
practically any business with slight ex¬ 
pense and astonishing accuracy, pro¬ 
vided the proper method is chosen. On 
the other hand, many situations do not 
warrant the expense of maintaining in¬ 
ventories. Our experience in more than 
fifteen hundred factories has enabled 
us to solve many difficult inventory 
problems; we believe we can work out 
a satisfactory plan for any concern, no 
matter what its nature. 

Location records of patterns, tools and 
materials expedite production by ob¬ 
viating waiting for needed equipment 
or materials. The memory of individu¬ 
als does not have to be depended upon. 

Responsibility for errors and theft can be 
determined through proper records. 
This covers responsibility for loss of 
tools, waste and spoilage, and theft of 
tools and valuable materials. 

Production reports really come as part 
of the planning system as do also reports 
of piece work earnings. They give the 
executive a valuable cross-sectional 
view of the operation of the plant at a 
glance. 

Performance records of materials, sup¬ 
plies and tools give a line on the most 
economical grades and makes regard¬ 
less of first cost. These records on 


leather belting alone, in one plant where 
we installed them, saved over $5,000 a 
year on purchases which had amounted 
to $17,000 a year: this in the face of a 
51% increase in belting prices and 32% 
increase in plant production. 

Perpetual appraisals and registers of 
property and equipment are of value 
for insurance purposes and deter over¬ 
loading of the assets by a management 
which is pecuniarily interested in prof¬ 
its. They are also of inestimable value 
in preparing depreciation figures for 
tax report purposes and later in sub¬ 
stantiating the figures taken. 

Reports for executives, if chosen to give 
only the significant facts of the business, 
and sufficiently condensed to give the 
information quickly, are great aids in 
making decisions bearing on the success 
of the business. Too many reports 
which executives get contain useless 
information and necessitate wading 
through a host of useless figures to get 
at those that are vital. Sometimes 
graphic methods of presentation are 
desirable: this depends upon the man 
who gets the reports. We believe 
strongly in condensing reports and 
giving only essential figures. 

Modern accounting methods, designed to 
give pertinent facts about the business, 
rather than to be solely a handsome set 
of books, are needed in many otherwise 
well-balanced concerns. The general 
books should be tied into the cost sys¬ 
tem as we have already seen. Then, too, 
there are many short cuts such as 
voucher checks, charge registers and so 
on, which cut down the clerical labor 

required and give even more accurate 

(Continued on page 23) 


[ 21 ] 


WHAT OUR CLIENTS SAY 


Vitreous sanitary ware, two letters. We in¬ 
stalled cost accounting systems for many con¬ 
cerns in this industry: 

“As to the cost system installed for 
us by Miller, Franklin, Basset and Co., 
would say that their system and service 
have been extremely satisfactory, and 
we would say further that this company 
has installed the same system in a 
number of the potteries engaged in our 
' branch of the trade. We believe that 
all of the sanitary pottery concerns in 
which their system has been introduced 
have found it entirely satisfactory and 
in our own particular case it has filled 
a long felt want. We have no hesitancy 
in recommending this concern very 
heartily should you desire to have work 
of this character done for you. ” 

“With regard to Miller, Franklin, 
Basset & Co., about whom you inquire 
in your letter of the 8th, we would say 
that we cannot speak too highly of their 
work. 

“ This company installed a cost sys¬ 
tem in our plant as they did for a num¬ 
ber of the sanitary potteries and we are 
more than satisfied with the system and 
their services. This same opinion is 
shared by all of the potteries who have 
engaged them for this kind of work and 
we recommend them most heartily to 
anyone contemplating the installation 
of a cost system.” 

Pottery, earthenware and porcelain: 

“We have only the highest recom¬ 
mendation to make of their system, and 
candidly believe that if you are looking 
for a cost system and efficiency system, 
you will find theirs among the best.” 


From the secretary of a national hardware 
association: 

“By vote of our association the ex¬ 
ecutive committee was directed to se¬ 
cure from our members at large an ex¬ 
pression of their experiences with cost 
accounting methods, with a view to 
ascertaining what systems had proved 
most satisfactory. 

“Because of the number of replies 
from our members endorsing systems 
installed by Miller, Franklin, Basset & 
Co. it was decided to recommend their 
services to all of our members, and 
subsequent developments proved the 
wisdom of this selection. 99 

A glove manufacturer: 

“We engaged them some years ago 
to overhaul our office and factory sys¬ 
tem, and found their work all that was 
claimed for it and have followed their 
methods ever since. We have never 
regretted the money paid out—in fact 
would consider the benefit we have 
derived 'worth many times the amount 
expended." 

P aptr-ma\ing machinery. Our experience 
with this company goes lac\ years: 

“Replying to your inquiry, Miller, 
Franklin, Basset & Co. installed our cost 
system in 1906, and the work they did 
for us at that time proved very satis¬ 
factory indeed. Their system we have 
been using ever since and from our 
experience we can recommend them to 
you as efficient and satisfactory people 
to do business with. Our judgment is, 
that unless you already have a modern 
cost system in your plant, they can help 
you." 


[ 22 ] 




HOW TIME STUDIES REDUCE COSTS 


results than the old methods. We give 
this factor the most careful attention. 

■4 Time study 

The successful manufacturing organiza¬ 
tion is constantly trying to make the 
work of the producing laborer easy and 
quick, in order to reduce costs, increase 
production and make the worker better 
satisfied with his job. 

The workman usually has neither the 
desire, technical training, nor breadth of 
vision to increase his producing capac¬ 
ity. Even if he has these qualities he 
is practically powerless to put improve¬ 
ments into effect, either from force of 
discipline or because of his own code. 
Yet he is the only one with a complete 
and highly specialized knowledge of the 
details of the operations he performs. 

Time studies give the details of this 
specialized knowledge to an engineer, 
who has the advantage of incentive, 
technical training and breadth of vision 
and the further advantage of being un¬ 
hampered by restraints of shop disci¬ 
pline. His sole duty is to make im¬ 
provements. 

Furthermore, the record of his stop¬ 
watch gives him an accurate measure of 
what may be justly expected in quan¬ 
tity of output. 

We apply time study to individual 
operations for the following purposes: 

Standards of production which are just, 
both to the employer and to the work¬ 
man, cannot be set by rule of thumb or 
by a foreman’s guess. If set in this 
way, as so many are, they are almost 
certain to be either too low, in which 
event the company suffers, or too high, 
resulting in tasks being set which the 


workman knows he cannot achieve. 
This tempts him to ‘Tie down” on the 
job and causes both him and the com¬ 
pany to lose. Standards which are set 
from accurate time and motion study 
are fair to both and result in higher 
production without increased fatigue. 

The proper sue of gangs can easily be 
determined by means of time studies. 
We found in one instance that adding a 
man to a gang of four increased pro¬ 
duction 47%. More often, because 
gangs are usually organized to take care 
of peak production, we find that de¬ 
creasing a gang, say from four men to 
three, will reduce production only very 
slightly, perhaps only about 10% or so. 
Either way a saving is effected. 

Inefficient use of machines will very often 
escape observation unless the stop¬ 
watch aids the observer. Time studies 
assure that this inefficiency will be picked 
up. Correcting it is then usually easy. 

Subdivision of operations , or specializa¬ 
tion, may be carried too far sometimes. 
The time study shows just how far it 
pays to subdivide the operations and 
whether, as frequently is true, it is more 
economical to allow one man to perform 
a combination of operations. 

Efficiency of tools and supplies may best 
be studied with the stop watch. Other¬ 
wise the foreman’s often unreliable 
opinion that one or another is best is 
the sole guide. For instance, in metal¬ 
cutting this includes investigation into 
small tools as to clearances and angles, 
kind of steel, types and number to have 
on hand, forging, heat-treating and so 
on. In other industries, such as gar¬ 
ment making, it is applied to such 

{Continued on page 25) 


[23] 


WHAT OUR CLIENTS SAY 


A manufacturer of gears, clutches and other 
automobile parts says: 

“It gives us great pleasure to say that 
the system which you installed in our 
factory the first part of 1909 has proved 
to be satisfactory, and has given the 
desired results. 

“We consider we have saved con¬ 
siderable money by using your methods, 
and cheerfully recommend them to 
anyone who desires up-to-date ways of 
determining the proper amount of over¬ 
head to add to the cost of their pro¬ 
duction.” 

Salt: 

“ Our experience with Miller, Franklin, 
Basset & Company was very satisfac¬ 
tory. They made an examination of 
our plant and in our opinion used a good 
deal of common sense. They were rep¬ 
resented here by some very high grade 
men.” 

Springs and tubing: 

“We recommended them to several 
concerns, and have heard very good 
reports of their work. We can most 
heartily recommend their services for 
anything in the line of cost and system 
work.” 

From an underwear manufacturer for whom 
we did both cost and production work.. 

“They employ, in our opinion, ex¬ 
perts in this line of work, and as their 
experience has undoubtedly been broad, 
the manufacturer in employing these 
engineers obtains many advantages. 
We look upon the work they did for us 
as a success.” 


Paint and varnish makers: 

“Miller, Franklin, Basset & Company 
representatives were in our plant for 
about six months starting in the fall of 
1915. We liked these men very much, 
were pleased w r ith their way of doing 
business, and it is our belief they helped 
us as much as any organization of that 
kind could have helped us under the 
circumstances.” 

Success in an enameled-ware plant: 

“In reply to your inquiry, we w ish to 
say that Miller, Franklin, Basset & Co. 
have installed cost system in our plant 
which is proving very satisfactory. The 
improvements which they recommend¬ 
ed have effected quite a saving.” 

These linoleum people have used our services 
for a number of years: 

“When we have anything in the way 
of special accounting or factory efficien¬ 
cy we would not consider going to any 
other company. We have one of their 
engineers at w r ork in our factory now.” 

4. 

New England quarriers: 

“From what we saw of their work for 
us we do not hesitate to recommend 
them as being capable and fully able to 
give expert advice on efficiency meth¬ 
ods looking toward reduction of cost 
of overhead expenses.” 

Hollow-ware and gas stoves: 

“Answering your favor of July 30th, 
w r e are pleased to state that your firm 
four or five years ago put in a cost sys¬ 
tem for us, which has been very satis¬ 
factory.” 








HOW TIME STUDIES REDUCE COSTS 


problems as the determination of the 
grade of sewing-thread that is most 
economical by ascertaining the time 
consumed in repairing breaks and so on, 
as against the higher purchase price of 
better grades. 

The advisability of new machines is fre¬ 
quently shown by time studies. Where 
hand-feeding a machine takes up a 
large percentage of the time in opera¬ 
ting, it is often poor economy not to 
spend the money necessary to get high 
speed machines. On the other hand, 
it may happen that the wasted time of 
a machine attendant used in feeding 
is much cheaper than the purchase of 
attachments. Scientific knowledge of 
the time taken obviously is the best 
guide here. 

The best practise in any operation may 
be determined by analyzing time stud¬ 
ies. This results in large savings espe¬ 
cially in hand operations. 

Location of work and tools. A time 
study which showed us that a trifle more 
than 20% of one man’s time was spent 
getting tools and work, resulted in a 
re-arrangement which cut this wasted 
time to 2.36%. 

Unnecessary fatigue may be prevented by 
eliminating needless lifting and walking 
or by changing awkward operations. 
Usually these faults are not apparent 
until a time study shows definitely the 
time lost in doing them. 

Designing proper accessories such as jigs, 
tools, conveyors and so on is often sug¬ 
gested by an analysis of the time study. 
Work-holders of proper size and height, 
tool-boxes of correct proportions, safety 


devices and automatic control devices 
for machines are usually effective in 
boosting production and are often the 
result of time study. 

Improper handling at one stage may 
result in lost time in succeeding opera¬ 
tions. Time study will show this. 

The advisability of wage incentives to in¬ 
crease output may be indicated by the 
time study. This is discussed in detail 
under the subject of wage incentives. 

The arrangement of machines is fre¬ 
quently not the best, and the time study 
may suggest a re-arrangement which 
will save time and money. Many times 
this results in having the man who “re¬ 
ceives” from one machine feed to an¬ 
other thus reducing the payroll. In 
many other ways a re-arrangement of 
machines saves time, labor and expense. 

Unbalanced equipment results in con¬ 
gestion of materials or in idle machine 
hours: both are costly. Time studies 
which show the capacity of every ma¬ 
chine in the plant disclose unbalanced 
conditions. Often a single machine 
added to the “neck of the bottle” in a 
fairly large shop will increase the plant’s 
production 50% or more. 

Physically unfit workmen are often spot¬ 
ted by time study. Sometimes they 
can well be used on other operations and 
a fit man put on the other’s job. 

Piece rates should always be based on 
time studies; never on guesses. This is 
discussed in detail on page 27. 

Mismanagement by executives is often¬ 
times evident only through time study 
of workmen. The time lost through 

lack of discipline, lack of instruments, 

(<Continued on page 27) 


[25] 


WHAT OUR CLIENTS SAY 




Clothiers, hatters and furnishers: 

“We are very pleased to say, as we 
have on several other occasions, that 
the work you did for us a number of 
years ago was very satisfactory indeed. 

“ Prior to your installing your sys¬ 
tem, we had had a great deal of trouble 
with leakages, which we were unable to 
locate, but since that time we have had 
no difficulty whatever in that way. 

“We really feel that your system 
has saved us thousands of dollars. ” 

A well \nown match manufacturer in whose 
boxboard plant we worked, says: 

“The work done by Miller, Franklin, 
Basset & Company at our boxboard 
mill was entirely satisfactory. Our ex¬ 
perience has been that they are a thor¬ 
oughly capable and reliable concern to 
have do work.” 

A lumber company: 

“They furnished the rim manufac¬ 
turers with an accurate report of the 
actual cost of production of a stand- 
dardized product in the various plants 
throughout both the United States and 
Canada.” 

From a Pennsylvania coal mining company 
which employed us: 

“All the work Miller, Franklin, Bas¬ 
set and Company have done for us has 
been very satisfactory.” 

From one of the many paper mills which 
we have served: 

“I beg to say that Miller, Franklin, 
Basset & Company, engineers and ac¬ 
countants, did some work for us which 
was entirely satisfactory.” 


A manufacturer of Janices said: 

“We had them make a survey of our 
plant and their work was very satisfac¬ 
tory to us. 

“I consider them competent and able 
to tackle a proposition such as you have 
put up to them in a manner which, I am 
quite sure, would be satisfactory to 
you.” 

Clay and porcelain products: 

“There is no doubt about their being, 
quite proficient in their business, and 
we now take a great deal of pleasure in 
the feeling that our cost department 
and our accounting system are second 
to none.” 

A big machine-tool plant: 

“In our opinion the system is very 
efficient, and one that obtains results 
without a lot of unnecessary work being 
involved.” 

Bed springs, steel couches, etc.: 

“We have to advise that Miller, 
Franklin, Basset & Company installed 
our cost system about six years ago 
and same has proved very satisfactory” 

An Ohio tile company: 

“Miller, Franklin, Basset & Company 
did some work for us which was en¬ 
tirely satisfactory and we are pleased 
to recommend them for your consid¬ 
eration.” 

Woolens and worsteds: 

“Miller, Franklin, Basset & Company 
installed a cost system for us during the 
year 1915, which proved very satisfac¬ 
tory.” 


[26] 


WAGE INCENTIVES THAT INSPIRE THE WORKER 


delay in delivering tools or materials 
to the workman, poor condition of tools 
and a hundred similar faults become 
apparent when the lost time is recorded. 
The surest way to get the workman to 
do rapid, careful work is to appeal to 
him through his pocket by giving him a 
wage incentive. This may be either a 
piece work rate or some adaptation of 
a premium or bonus system. Even 
those workmen who must by the 
nature of their work remain on day 
rates—the so-called nonproducers like 
clerks, janitors and so forth—can be 
stimulated by financial incentives. This 
point will be bought up again under the 
heading “collective bonuses/’ 

5 Wage Incentives 

To get the greatest success from a 
wage incentive, there must be willing 
co-operation of the workman with the 
management and in no less degree of the 
management with the workman. Ab¬ 
solute fairness and justice, therefore, 
must govern in setting rates, and good 
judgment must be used in choosing 
the kind of wage incentive. 

If the condition of the material, tools 
or machines necessarily varies to such 
a degree as to interfere seriously with 
the workman’s earning capacity, it is 
obviously unfair to pay him on a piece 
work schedule. It may be argued that 
conditions will average up in the long 
run, but it must be remembered that the 
workman is not a capitalist and that the 
one lean week when his pay falls off 
through no fault of his own, will be re¬ 
membered long after the fifty-one fat 
weeks which may follow. 


The kind of incentive to be used is in¬ 
fluenced by consideration of the clerical 
and operating simplicity, justice to both 
employer and worker, nature of the 
work, probability of uniform production 
being possible and so on. 

Setting fair rates. When intelligently 
used, time study eliminates all guess¬ 
work and unfairness. The engineer who 
makes the study needs to have a sym¬ 
pathetic understanding of the work¬ 
man’s viewpoint and know how to make 
a tactful approach, else he is sure to 
meet with great opposition from the 
workmen. About as dangerous an 
experiment as can be made is to turn 
over the setting of rates to inexperienced 
men. Here, above all, is the experience 
and judgment of the expert needed. 
Then too, since he is an outsider, he is 
free from internal influences that might 
warp his judgment. 

Proper allowances for the personal needs 
and rest of the operators must be con¬ 
sidered in setting rates: lessening fa¬ 
tigue often leads to increased produc¬ 
tion. The amount of rest needed de¬ 
pends upon such factors as weight and 
handiness of the article and degree of 
concentration and activity required by 
the work. Excellent results have been 
achieved by rotating a gang on work 
where one man’s task was disproportion¬ 
ately tiring. 

The workman must understand the meth¬ 
od of payment if it is to be of the 
greatest value. If he does not understand 
how his pay is figured he will be sus¬ 
picious of the method and will fear he is 
being “done.” It is always essen¬ 
tial to have a simple plan and to make 

{Continued on page 2V) 


[ 27 ] 


WHAT OUR CLIENTS SAY 


A small foundry: 

“Miller, Franklin, Basset & Co. in¬ 
stalled a cost system for us, and it has 
been extremely satisfactory. They are 
careful, intelligent people, and we are 
glad to recommend them, and a fair 
statement of our appreciation of their 
value would be expressed about as fol¬ 
lows: we would not go back to the old sys¬ 
tem for ten times what we paid these people 
for our installation . ” 

A brass goods manufacturer; two letters: 

“Replying to your letter of the 7th 
inst., the firm of Miller, Franklin, Basset 
and Co., did some work for us a few years 
ago with entire satisfaction to ourselves. 
We found them reliable and careful and 
we have reason to believe them to be 
entirely responsible. ” 

The second letter: 

“In reply to yours of June 1st, Miller, 
Franklin,Basset & Co. did some work for 
us some two years ago, and we were 
entirely satisfied with the character of 
the service performed. The job was 
not a large one, but we have reason to 
believe them to be among the best of 
the firms in that line of business. ” 

Water-wheels and power-transmitting ma¬ 
chinery: 

“Miller, Franklin, Bas3et& Company 
installed a cost system for us some years 
ago, and we are pleased to say it has 
turned out most satisfactorily. All their 
dealings with us have been businesslike 
and satisfactory. We think they are 
abundantly competent to work out 
intricate problems in manufacturing 
establishments.” 


Underwear: 

“They worked out for us a scientific 
cost system which we believe is accurate 
and a much better system than we had 
before. These people have had a great 
deal of experience in all kinds of facto¬ 
ries and go into the details of cost 
accounting in such a way that we think 
you will get a lot of additional data that 
you were unable to get before, in fact 
we think they will be able to give you 
some things about your costs that you 
never thought of before. We certainly 
feel safe in recommending their work.” 

This is what a large hosiery manufacturer 
things of our worl\: 

“They installed for us a cost system 
which is thoroughly up-to-date and 
complete in every particular, so far as 
we can see, and the same can be oper¬ 
ated at very little extra expense over 
our old system, which was very in¬ 
complete.” 

Wholesale grocers: 

“In regard to Miller, Franklin, Basset 
and Co., we wish to advise that we 
had them do some work for us some ten 
or twelve years ago which proved very 
satisfactory as to expense and we con¬ 
sider the service rendered us to be good 
value.” 

Vehicle wheels: 

“We have your favor of recent date 
and beg to advise that Miller, Franklin, 
Basset & Co., engineers and account¬ 
ants, installed our cost system and 
also did some efficiency work and we are 
pleased to say that we are perfectly 
satisfied with their installation.” 


[ 28 ] 


WAGE INCENTIVES THAT INSPIRE THE WORKER 


sure that every workman thoroughly 
understands it. At the time the men 
are being educated as to how the plan 
works they may well be “sold” on the 
justice of it and shown how, while in¬ 
creasing the company’s profits, they are 
at the same time earning more them¬ 
selves with less physical effort. In this 
way their co-operation may be easily 
obtained, provided of course the in¬ 
centives have been correctly devised. 

Comparative records of employees which 
show their efficiency as measured either 
by percentages or by dollars, are effec¬ 
tive spurs to the men when used in con¬ 
junction with wage incentives. They 
give the spur of contest to the day’s 
work by pitting man against man or de¬ 
partment against department. We have 
secured almost unbelievable results in 
this way. 

Checking earnings is easier under some 
forms of wage incentive than under day¬ 
work. We always provide an effective 
check to prevent false reporting or pay¬ 
roll padding, which,unchecked,frequent¬ 
ly runs into large money losses. 

Incentives to reduce waste . One effect of 
straight piece work payment is natural¬ 
ly to tempt the operator to scamp his 
work in an attempt to run up a high 
piece score. This necessitates unusual¬ 
ly close inspection. But the tendency 
may generally be overcome with a qual¬ 
ity bonus. The first step is to deter¬ 
mine standards for allowable waste and 
spoilage. Then a bonus may be given 
for reduction of the waste below the 
standard. This is usually effective 
where the company is dependent on 
the workman’s skill or judgment. Or a 


high piece rate for output may be set, 
based on standard waste with deduc¬ 
tions for exceeding the standard. 

Quality bonuses have often proved a 
stumbling-block for the factory execu¬ 
tive who has attempted to install them. 
Often in the effort to increase earnings 
under a quantity incentive, the operator 
not only wastes material but does not 
use due care to turn out a high quality 
of finished product. This may cause a 
large loss through goods which fail to 
pass inspection or which must be sold as 
seconds. To overcome this, we ordina¬ 
rily first determine standards for quality 
and then work out a plan fitted to the 
peculiar needs of the plant which will 
reward the worker for excellence of out¬ 
put and for consistent performance. 

Equipment which depreciates rapidly 
may be given longer life by giving the 
operator a bonus based on his keeping 
the machine in good condition and not 
abusing it. This is often effective. 

Collective bonuses of many kinds may be 
offered, not only to the productive but 
to the nonproductive workers as well. 
Usually they are based on the co-opera¬ 
tive spirit which results in savings ef¬ 
fected by increasing output from the 
plant as a whole. In one plant a col¬ 
lective bonus resulted in a 26% increase 
in production within three months of the 
time it was started, without increasing 
either the equipment or the number of 
workers on the payroll. 

6 Physical Arrangement 
of the Plant 

The physical condition of the plant re¬ 
ceives our attention when it affects the 

(Continued on page 31) 


[ 29 ] 


WHAT OUR CLIENTS SAY 


Harness, saddler, and other leather goods: 

“In reply to yours of the 16th, in re¬ 
gard to services rendered by Miller, 
Franklin, Basset & Co., engineers, and 
accountants, will say that the work 
which this firm did for us was entirely 
satisfactory and we are glad to recom¬ 
mend them to you. 

“We believe that they will give you 
excellent service. Both from our ex¬ 
perience and from our indirect knowl¬ 
edge of them we believe them to be 
highly efficient/’ 

Another lithographer: 

“Messrs. Miller, Franklin, Basset & 
Co. installed a cost system in our 
plant that has given excellent results. 
The system has been in operation six 
years and we appreciate its value more 
each year. Their services here were 
highly satisfactory and we believe you 
will find them very helpful to you in 
your business.” 

A manufacturer of fine mechanical tools 
writes: 

“In 1908 and 1909 you installed a 
cost system in our factory. This sys¬ 
tem with changes and additions as have 
been necessitated by changed condi¬ 
tions has been in force since it was in¬ 
stalled and has been very satisfactory 
in its operation.” 

Importers of tea, coffee and spices: 

“In reply to your letter of the 15th, 
would state that Miller, Franklin, Bas¬ 
set & Company installed a system of 
cost accounting for us a number of 
years ago, and it is still in operation and 
quite satisfactory.” 


Fruit syrups, etc.: 

“In reply to your inquiry of the fif¬ 
teenth, regarding Miller, Franklin, Bas¬ 


set and Co., as you know we are a new 
concern, but since the inception of this 


business these people have been of very 
great service to us. In fact, I consider 
the services they are capable of render¬ 
ing, invaluable to any firm.” 


A prominent Wall Street hanging house: 

“I am very glad to answer your in¬ 
quiry in regard to Miller, Franklin Bas¬ 
set & Co. Some years ago, we em¬ 
ployed this firm to introduce if possible 
a cost accounting system for us, such 
work having never been before at¬ 
tempted in the Wall Street district, so 
far as we could ascertain. The work 
they did for us at that time was very 
satisfactory.” 


From a steel company in Canada: 

“This firm did some work for us a few 
years ago and we feel that we received 
a great benefit from their services. We 
do not think you would make any 
mistake in having them take up any 
special work for you.” 

Bobbins and shuttles: 

“They were apparently very skilful 
in their line, and we know of no other 
concern that we would be likely to em¬ 
ploy should we have any need of such 
services.” 

A woolen manufacturer: 

“Miller, Franklin, Basset & Company 
installed a cost system for us and we 
found their work very satisfactory in 
every way.” 





MAKING THE PLANT A GOOD TOOL 


operating efficiency. Frequently we 
are able to recommend re-arrangements, 
improvements and comparatively slight 
additions which increase production or 
decrease costs out of all proportion to 
the slight outlay required. 

The points covered here are only 
those which are given attention by our 
production and industrial engineering 
department. We have also a construc¬ 
tion and valuation division which pre¬ 
pares complete plans and specifications 
for new plants, and for changes to exist¬ 
ing plants. It also supervises the work 
of contractors. The activities of our 
construction and valuation department 
are described in another booklet. 

Among the physical factors affecting 
output which we examine are: 

Facilities for handling material. This 
includes locating machines and depart¬ 
ments to obtain the shortest possible 
routing of material through the plant, 
thus saving time and effort and avoid¬ 
ing congestion of materials due to loops 
and “ blacklashes. ” We examine into 
the need for conveyors, and recommend 
whatever type is best suited to the need, 
whether mechanical, gravity, or truck. 
This applies not only to the inside of the 
plant, but to the facilities for receiving 
and shipping as well. Often it is advis¬ 
able to replace or repair floors to facili¬ 
tate trucking. In one instance, we 
saved a client more than $500 a month 
in trucking expense by recommending 
that floors better suited to the need be 
laid in some departments. 

Storage facilities often may be increased 
by bettering the equipment in the store¬ 
rooms. Whether to use racks, shelves, 


bins or other containers is a problem we 
approach. In one plant, a crowded store¬ 
room was made to hold 13% more mate¬ 
rial by replacing the bulky wooden 
shelves and bins with compact steel. 
Often it is not possible to provide ad¬ 
ditional storage space and then it is 
necessary to conserve in some such way 
whatever is available. 

We look into the question of whether 
a single centrally located storeroom is 
best or whether time and expense may 
be saved by splitting the storerooms up 
and locating them so that they will 
be more convenient to the various 
producing departments. 

Tool rooms are subject to much the 
same scrutiny as storerooms; conveni¬ 
ence, available space, arrangement and 
location being considered. 

Lighting, ventilation and heating are 
powerful factors for or against produc¬ 
tion. Sometimes a coat of white paint, 
a re-arrangement of lighting-fixtures, or 
even regular washing of windows will 
not only boost production but even de¬ 
crease accidents.Where noxious fumes or 
dust are present, a ventilating system 
will build good-will for the company 
among its workmen. A well-lighted, 
well-ventilated, properly heated shop is 
naturally chosen as a place in which to 
work in preference to another, less 
pleasant. Sanitary conveniences, too, 
are not overlooked by the worker when 
it comes to picking an employer. 

Safety devices, aside from their humani¬ 
tarian aspect, often result in faster work. 
The man who is afraid of his machine 
or of the conditions surrounding him is 
bound to work slowly for safety’s sake, 

(<Continued on page S3) 


[ 31 ] 


WHAT OUR CLIENTS SAY 


Webbing and cotton belting arc the products 
manufactured by the very large company 
which wrote the three letters that follow: 

“Their work was entirely satisfactory 
and, as a result, we have an expense 
analysis which gives us all of the neces¬ 
sary details of our business without 
going into the minute details which so 
many systematizers inaugurate, and 
which are so useless and take so much 
unnecessary time on the part of an 
executive to examine. ” 

“It gives us pleasure to say that Mil¬ 
ler, Franklin, Basset & Company did 
for us what we did not believe was pos¬ 
sible, i. e., the separating of our plant 
into various departments and applying 
the operations and supplies definitely 
to their proper departments. That was 
our main object in securing their ser¬ 
vices. 

“In addition to that, they installed 
for us a cost system, giving us a very 
comprehensive expense analysis, which, 
in addition to the information it gives 
us, effects through its operation econ¬ 
omies through our entire plant. 

“We have confidence in their ability 
to get results, and in our judgment they 
do so at a minimum of expense.” 

“In 1912 they installed for us a cost 
system which gives us all the details 
of our business without burdening us 
with a mass of unnecessary details, or 
involving the use of a large clerical 
force. 

“We have absolute confidence in the 
organization and consider the expense 
involved has been a profitable invest¬ 
ment for us.” 


The three letters that follow are from a con¬ 
cern which makes carpets and rugs: 

“The work was thoroughly and in¬ 
telligently performed by them, and the 
service has been valuable to us. 

“We later engaged them again in an¬ 
other department, and their report and 
recommendations in that case have been 
of material assistance to us.” 

“We employed Miller, Franklin, Bas¬ 
set & Co. of New York City upon in¬ 
vestigation work in connection with 
efficiency in one of our departments 
about two years ago. 

“The report made to us was thor¬ 
oughly and intelligently prepared and 
satisfactory.” 

“They assisted us quite well in estab¬ 
lishing a plan for controlling and fol¬ 
lowing up special orders through the 
manufacturing processes. They went 
about the work in a practical way and? 
the results were satisfactory to us.” £ 

* 

Clutches and transmissions: 

“We feel that this concern is most: 
reliable and that the men they have in 
their service are very efficient and well 
posted men in their line. 

“We are indeed very glad that we 
decided on this company to do our 
work, and feel sure that should they be 
favored with your proposition you 
will be very much pleased with the 
results.” I 

A paper company: 

“My impression so far as we worked 
with them is that they are good people 
and know their business.” 


PREVENTING THE WASTE OF MATERIAL 


if for no other reason. Sprinkler sys- 
stems and other fire-prevention meth¬ 
ods not only pay for themselves by 
lowering insurance rates but improve 
the morale of the workers. 

7 Eliminating Material Waste 

It is seldom possible, of course, to pre¬ 
vent all waste of materials in manufac¬ 
turing, but we have rarely seen a plant 
where we were unable to cut the waste 
considerably. Savings amounting to 
several thousands of dollars a year may 
often be effected in these three ways: 

1 By making less scrap 

2 By preventing the use of too 
much material, and 

3 By salvaging the necessary scrap 
to best advantage 

Incorrect manufacturing methods are a 
fertile source of waste. For instance, 
in the heat-treating department of one 
plant it was customary to break one 
piece out of each 100 to test the depth 
of carbonization. For this purpose, we 
substituted for the good piece, one al¬ 
ready spoiled in a preceding operation 
and thereby saved upwards of $3,000 a 
year. 

In a knit-goods mill we found that 
improper marking of the end of cloth 
rolls was wasting unnecessarily more 
than $10,000 a year. We could tell of 
hundreds of similar cases. 

One of the first investigations of ma¬ 
terial waste that we make is for material 
spoiled by manufacturing methods, and 
we usually find that by correcting the 
wrong methods the waste can be at 
least partly eliminated. 


Improper cutting of raw materials is also 
worthy of attention as it causes much 
waste, either because of poor layout of 
the work or carelessness on the part of 
the cutter. Where the value of the ma¬ 
terial is great, even a slightly better 
layout of patterns on the material will 
result in astonishing savings. It often 
pays to give a good deal of attention to 
juggling the patterns around to get an 
extra piece or two out of material. 

Centralizing the cutting in a depart¬ 
ment which does nothing else, rather 
than letting each workman do his own, 
is often worth while. 

Even the cutters are sometimes care¬ 
less, however, and then it is generally 
desirable first to standardize the cutting 
and then to offer an incentive to the 
cutter to meet the standard. 

Poor workmanship spoils a lot of mate¬ 
rial in most plants. It is due either to 
pure carelessness or to a piece rate 
which puts a premium upon speed rath¬ 
er than quality. Sometimes spoilage 
of this kind can be reduced by mechani¬ 
cal safeguards, but the most effective 
method usually is to offer a quality 
bonus. 

First we generally study the existing 
piece rates to make sure that they are 
fairly set and that they do not, by being 
too low, put a premium upon spoilage. 

Then we devise, where possible, an 
incentive which will reward the work¬ 
man for carefulness and high quality of 
output. We have done this success¬ 
fully in nearly every industry. 

Using too much material is a common 
source of waste. Generally, by setting 

a standard amount of material to be 

(Continued on page 35) 


[ 33 ] 


WHAT OUR CLIENTS SAY 


A company , whose, product is vulcanized 
fibre , wrote us these two letters: 

The first letter: 

“This is one of the oldest compa¬ 
nies in their line of business and has 
always had and still possesses the reputa¬ 
tion of being one of the very best. It is 
owned and managed today by four or 
five efficient, energetic young men who 
understand their business thoroughly 
and it is our belief that their work is of 
the best. Should you be desirous of 
installing a cost system and having 
some work done along the lines of fac¬ 
tory efficiency, we believe they could give 
very satisfactory service as % they cer¬ 
tainly did to us.” 

The second letter: 

“The writer has a considerable knowl¬ 
edge of the abilities of the various con¬ 
cerns doing this class of work and it is 
his opinion that Miller, Franklin, Basset 
& Company are in the very foremost 
rank. They are one of the very oldest 
concerns doing this class of work and 
unlike many of the firms that started 
in the business at the time they did, 
they have kept abreast of the times and 
are today doing as good work as they 
ever did. In fact they have kept 
abreast of the times and strengthened 
their organization as the condition of 
the times demanded. 

“Their methods are not spectacular 
but are common sense in the extreme, 
and we feel sure that if given good co¬ 
operation by your heads of depart¬ 
ments they will give entire satisfaction 
and that you will feel the money you 
have paid them for their services was 
a wise investment.” 


Crucibles and other manufacturing chemists 
equipment: 

“The writer is taking the liberty of 
replying to yours in reference to the 
work performed by Miller, Franklin, 
Basset & Company. We are pleased to 
advise that this was highly satisfactory, 
and take pleasure in recommending 
them to you.” 

A knitting company says this: 

“Through the system our plant has 
been divided into departments and it is 
very easy from the monthly reports to 
check up overhead and other expenses 
as they occur in the different depart¬ 
ments. 

“These people do not seem disposed 
to enter the plant and turn it upside 
down in order to install their system, but 
rather they make their system fit the 
business with as few changes as pos¬ 
sible.” ; 

Pottery: 

“We endorse most highly the services 
of Miller, Franklin, Basset & Co., of 
New York City. The system is not 
in full working order yet, but every in¬ 
dication confirms us in the opinion that- 
our money will have been more than 
well spent and we have nothing but 
praise for the results so far obtained.” 

Motor parts: \ 

“This company has done considerable 
work through all our plants and we feel 
that investments in their services have 
been profitable ones. They have done 
some good work for us and we know 
that they have done some good work for 
other concerns.” 


[ 34 ] 


( 


IMPROVING THE HUMAN ELEMENT 


used and offering a bonus for meeting 
this standard we are able to reduce it 
materially. Supplies such as sandpaper, 
thread, oil and so on should as a rule be 
issued only on requisition. It some¬ 
times pays even to put a wage incentive 
into effect here. 

Salvaging the scrajp-heap offers a way to 
realize on waste which cannot possibly 
be avoided. Sometimes a way to pro¬ 
fitably utilize the waste material in the 
product may be found. 

Often where the scrap cannot be used 
in the product, a new line may be add¬ 
ed to utilize the waste. A case in point 
was that of a manufacturer of gloves 
who made penknife cases and watch- 
covers from the cuttings of his glove- 
skins. 

Often the material which is scrap for 
one business is the valued raw material 
of another. If that is so, a much higher 
price can often be obtained from another 
manufacturer than can be had from the 
junk-man. 

It usually pays to sort scrap into 
grades rather than to lump it and sell 
it as a whole. Our knowledge of mar¬ 
kets is a valuable guide in getting the 
greatest return from materials that must 
go to the scrap-heap. 

8 Organization 

Frequently by slight changes in du¬ 
ties, considering the peculiar aptitudes 
of the men in a concern, much more ef¬ 
fective management results. When re¬ 
quested, we make suggestions along 
these lines. Organization is needed to 
give force and action to the methods we 
install. Therefore we find it well some¬ 
times to give thought to the following: 


Lines of authority , together with limits 
of authority, should be definitely un¬ 
derstood. Often the clearest way to 
show these lines and limits is by an 
organization chart. The existing con¬ 
ditions should not be violently upset but 
it is usually possible to adapt the exist¬ 
ing organization to new requirements. 

The new duties of individuals brought to 
them by the work we install are always 
carefully taught them by us. We over¬ 
see their activities until we are sure they 
are able to go it alone. 

Workmen's representation. If it seems 
desirable to stimulate the interest of the 
workmen by giving them representation 
in the management of the plant, we will 
guide the work in the light of our wide 
experience in work of this sort. As we 
have already said, while undoubtedly 
effective, it must be approached care¬ 
fully and the installation made step by 
step. Let us see what workers* repre¬ 
sentation should accomplish: 

First, it should provide the men with 
an unobstructed channel through which 
they can get their ideas and suggestions 
across to the management. 

Second, it should throw upon the 
workers a fair measure of responsibility 
in settling such points of policy and 
management as directly affect them. 

Third, it should supply them with a 
knowledge of and interest in the com¬ 
pany as a whole, to take the place of the 
narrow interest—or none at all—which 
they have in the necessarily restricted 
job at which they earn their wages. 

Now, if we are to get the real interest 
of the men, we must give them real re¬ 
sponsibility. Above all things, they must 

(Continued on page 37) 


[ 35 ] 


WHAT OUR CLIENTS SAY 


✓ 


A manufacturer of differentials, transmis¬ 
sions and dutches. 

“Answering your letter of November 
9, concerning Miller, Franklin, Basset 
and Company, beg to advise that they 
have been with us now for about one 
year, and while they have been able to 
work out a great many of our problems 
to our benefit, they have not as yet 
finished their work; and inasmuch as we 
are at the present time erecting new 
buildings in connection with our pres¬ 
ent plant, and in which when com¬ 
pleted their recommendations as to 
absolutely new arrangement of machin¬ 
ery will be effective, we are hardly in a 
position at this time to advise you as to 
the greatest benefits that we expect 
to derive from their work. 

“We have had other recommenda¬ 
tions, however, from manufacturers who 
have had their service and the results 
reported by them have been amazing 
and inasmuch as their line of work was 
very similar to ours, we shall expect in 
the new arrangement to manufacture 
our product at a very much lower cost 
than under our present system.” 

On another occasion they said: 

“The value of any efficiency installa¬ 
tion system, we believe, rests largely 
with the quality and calibre of the 
individuals directly on the premises 
doing the detailed work. The calibre 
of the people which they furnished was 
of the very highest.” 

• f 

Screws and holts: 

“Their work was done in a very thor¬ 
ough manner and the cost to us seems 
to have been a paying investment.” 


From a builder of planers and boring mills: 

“Miller, Franklin, Basset & Co. in¬ 
stalled a complete cost system in our 
plant a few years ago, covering every 
detail of our manufacture. We now have 
a system that gives us accurate costs, 
and gives them to us promptly and we 
are able to tell at the end of each month 
just how we stand. We are well satis¬ 
fied with the system in every respect. 

“In our opinion this company should 
be able to install any kind of a premium 
system or cost record that may be re¬ 
quired for your work.” 

* I 

Porcelain , pottery and earthenware: 

“All we need say for Miller, Franklin, 
Basset & Company, is that they are 
strictly first class experts in their line 
and their system is the best one offered, 
as we searched over the whole field, and 
it was not a case of expense entirely, 
but of a system that would give prac¬ 
tical results.” 

Another big paper company: 

“Replying to your letter of the 9th 
in regard to the services of Miller, 
Franklin, Basset & Co. would say that I 
consider these people a high grade and 
well informed firm. They are careful 
in securing data so that you can rely 
upon it. In their time studies their rep¬ 
resentatives are careful and accurate. ” 

i 

Marine hardware: 

“The service rendered by Miller, 
Franklin, Basset & Co. was quite a com¬ 
prehensive one and very satisfactory 
and we are using their system, as in¬ 
stalled a number of years ago, with a 
few minor changes.” 




[ 36 ] 


GIVING MEN A PRIDE IN THEIR WORK 


choose their own representatives. One 
experiment of this sort failed flat 
because, while it was called “work¬ 
men’s representation/’ the “represent¬ 
atives” were really appointed by the 
management. The whole scheme was 
patently a fake. 

The second class of representation, 
which is also more likely to fail than not, 
is the shop committee plan in which 
elected delegates of the men sit in con¬ 
ference with the management. Either 
they will be so awed that they will have 
little to say and so lose the confidence of 
their constituents; or, being fearful of 
their constituents, will do little but ob¬ 
ject and register complaints. 

When, however, we examine those 
forms of representation which have suc¬ 
ceeded it is easy to see why they have. 
They are the ones where the powers of 
the workers’ representatives are not 
patently abridged; where the responsibil¬ 
ity is put upon the workers and they are 
asked to bring in not complaints, but 
decisions. 

Usually it is not best to dump, un¬ 
expectedly, full power upon the workers, 
nor to start with a full-fledged, elabo¬ 
rate plan. 

Our own experience in making in¬ 
stallations of workers’ representation 
and our observation of similar plans put 
into effect by employers, satisfies us 
that the plan is sound and exceedingly 
effective. But we believe the enfranchise¬ 
ment of the shop should be gradual 
and no more elaborate than the specific 
conditions require. 

As a first step we frequently ask the 
men to elect inspection committees. 
Inspection is always a cause of dispute 


where workers are on piece rates; but 
if the decisions are put up to an elected 
committee the inspection is better cared 
for than ever and decisions which you as 
a manager could not enforce, will be 
easily enforced by the committee. From 
this committee, and from the training 
and responsibility which it gives, other 
elected committees spring. 

For instance, wage committees can 
take up wages and rates; efficiency com¬ 
mittees will investigate and report upon 
better methods; and so on until some¬ 
times the committees become so numer¬ 
ous that co-ordination is necessary. 
Then a representative body of the work¬ 
ers as a whole can be elected with the 
subcommittees subordinate to it. 

The ultimate result may be a repre¬ 
sentative body or group of bodies, like 
the House of Representatives, compris¬ 
ing workmen; a Senate made up of fore¬ 
men and sub-executives, and a Cabinet 
consisting of the chief executives. It is 
immaterial what form it takes: the big 
thing from start to finish is that the 
workers’ representatives should have 
constructive duties and should be given 
responsibilities. The whole plan must 
be the honest and whole-hearted effort 
of the management. 

In installing such a plan two points 
must be remembered; first, that the 
powers must be given the men gradual¬ 
ly, and second, that the plan cannot be 
slapped in fully developed. 

The best way, according to our expe¬ 
rience, is to develop it gradually and 
where possible as a part of other bet¬ 
terment work in the plant. The instal¬ 
lation can often be made coincidentally 

with the installation of a planning sys- 

(Continued on page 39) 


[ 37 ] 


WHAT OUR CLIENTS SAY 


This client makes both underwear and paper 
boxes: 

“Answering yours of the 4th, Miller, 
Franklin, Basset & Company, have 
done work for us for several years and 
their services have been highly satisfac¬ 
tory in all respects. 

“We are using their cost system, pro¬ 
duction methods and tax service and we 
believe you will be pleased with them 
and find the result well worth the ex¬ 
penditure.” 

Motors , carburetors and launches: 

“Miller, Franklin, Basset & Company 
did some work for us several years ago; 
in fact, they installed a new system in 
our plant, which has worked out very 
satisfactorily, and we consider it a very 
good investment.” 

Screw-cutting tools and machinery: 

“Miller, Franklin, Basset & Co. did 
considerable work for our company 
about five years ago which proved very 
satisfactory. They started many tilings 
for us at that time which we have 
developed and we consider have worked 
out profitably, both tP the workmen and 
ourselves.” 

Loom pickers and loom harnesses: 

“Perhaps the best comment we can 
make is that we thought well enough of 
their work to have them come again 
after having thoroughly tried it out for 
a number of years. We certainly have 
derived very great benefits in reducing 
costs, as well as knowing more rbout 
the details of the work, as it comes 
through the various manufacturing 
processes.” 


Earthenware , sanitary and chemical spec- 
ialties: 

“If you are considering installing a 
real up-to-date cost system don’t hesi¬ 
tate about employing Miller, Franklin, 
Basset & Co. We could write you a 
lengthy letter telling you a lot of nice 
things, but w T hat’s the use of taking 
your time, so we again repeat ‘don’t 
hesitate’.” 


Textile machinery: 

“We are certainly very glad that we 
employed the services of Miller, Frank¬ 
lin, Basset & Company in installing a 
cost system in our factory. 

“What we wanted them to do 
especially was to establish for us 
departmental overhead percentages so 
that we might better distribute these 
overhead or burden charges in our 
costs. 

“They did this very well and at the 
same time made some suggestions to us 
for the handling of our orders through 
the factory as well as regarding the or¬ 
dering of material which we believe were 
of great assistance.” 

A manufacturing chemist: 

“Replying to yours of June 28th in 
reference to Miller, Franklin, Basset & 
Co. beg to advise that I have made 
use of their services on one or two in¬ 
stances and have found them to be very 
satisfactory.” 

A manufacturer of steel dies: 

“The work which the old company 
did for us was very satisfactory and we 
consider them to be thoroughly efficient 
and reliable in their line.” 


[ 38 ] 






WHY OUTSIDE ENGINEERS CAN HELP YOU 


tem or with the setting of standard 
times and piece rates. It can even go 
along concurrently with the installation 
of a cost system. 

So much for what work our industrial 
engineering staff can and will under¬ 
take to do for a client. 

S OME manufacturers are frankly 
doubtful of the value of the services 
rendered by industrial engineers. They 
do not see how an “outsider” can 
tell them anything about how to run 
their business; and undoubtedly a man¬ 
ufacturer does know more about the de¬ 
tails peculiar to his business than an 
outsider can know. 

Here are three principal reasons why 
it pays to employ industrial engineers of 
wide experience: 

When a works executive attempts 
to solve wage and production problems 
himself, he must do so with a necessarily 
limited experience. At most, he usual¬ 
ly has had experience in only a few con¬ 
cerns and as a rule in only one or two 
industries. 

If he attempts to put in, say, a new 
plan of wage payment, he usually tries 
to install a method which he knows to 
have been successful in another concern, 
failing to see how the conditions differ 
from those in his own plant. 

Industrial engineers like ourselves are 
studying not only one plant, but prob¬ 
ably from 25 to 50 simultaneously. All 
told, we have studied and solved prob¬ 
lems in many more than fifteen hundred 
factories. This gives us a range of in¬ 
formation covering just about every pos¬ 
sible condition in every industry. We 
know that conditions in one plant which 


on the surface appear to be identical 
with those in another are oftentimes 
fundamentally different and therefore 
require different treatment. 

You hire us to do industrial and pro¬ 
duction engineering work in your plant, 
much as you would an architect, for 
our specialized knowledge and wide 
experience in a certain function of 
business. Any manufacturer knows 
better than any architect what he re¬ 
quires in a factory building, but few 
manufacturers attempt to design and 
build their own factories. To do so 
would be to save a small fee, and, in al¬ 
most every case, to waste several times 
the fee in uneconomical design, specifi¬ 
cation of material and so on. 

So when it comes to permanent 
methods and problems of management, 
it is wise to go to a group of special¬ 
ists—industrial engineers—whose knowl¬ 
edge is based on actual contact with, 
and study of thousands of management 
problems. 

The managing executives of a busi¬ 
ness have scant time to withdraw from 
the current exactions of the business in 
order to study methods. They are con¬ 
cerned—and properly so—with the day 
to day problems of buying, selling the 
factory’s output, getting the goods made 
and shipped, collecting the money, pay¬ 
ing the bills and meeting the payrolls. 

The factory executive’s job is to know 
all about the manufacturing processes 
of his business and to get the maximum 
amount of finished goods completed and 
shipped. This alone is a man’s size job 
and leaves mighty little time for investi¬ 
gations, study and installation of man¬ 
agement methods. 


i 


[39] 


{Continued on page I/T) 


WHAT OUR CLIENTS SAY 




/ 


A client who makes woven hose and rubber: 

“Replying to yours of the 28th, 
we take pleasure in advising you that 
Miller,Franklin,Basset & Co. revised our 
cost system and systematized our work, 
both in connection with office and 
factory, and the results which we ob¬ 
tained have proved most satisfactory.” 

Yeast and baling powder: 

“In reply to your letter of the 12th 
inst., may say the system installed, and 
the services rendered by Miller, Frank¬ 
lin, Basset & Co. were satisfactory to us, 
and it is our belief that the results justi¬ 
fied the expense.” 

Car builders: 

They really installed a complete 
system for handling the works end of 
the business. 

“Their work was very satisfactory 
and the men who did the work com¬ 
pared very favorably indeed with 
others in the same line of work I have 
had experience with.” 

Paper: 

“Replying to your letter of Septem¬ 
ber 4th, would state that Miller, Frank¬ 
lin, Basset & Company were employed 
by us in the latter part of 1917 and in 
the spring of this year, on both occasions 
for cost and efficiency work, all of which 
was entirely satisfactory.” 

A mail-order house: 

“They are very thorough in their 
work, and without question, if a con¬ 
cern is large enough to stand the in¬ 
troduction of efficient methods, they 
will save it a lot of money.” 


This letter is from a nationally-known 
shaving, soap manufacturer: 

“In reply to yours of the 30th ult. we 
beg to say that the work that was done 
for us was very satisfactory. We felt 
that considerable cleverness was shown 
in adapting things to our particular 
needs.” 

■ £ 

Builders of commercial automobile bodfts T 
“This concern has been doing some 
work for us for the last four or five 
months, and we think that they are as 
competent in organizing factory sys¬ 
tems as any concern of the kind in the 
country. All the men that I have met 
in this organization impressed me as 
being capable and honest.” 

Military and all-metal buttons; two letters: \ 
“They are particularly nice people to 
deal with. Their method of install¬ 
ing the system did not upset the works 
but went along with our present system 
all right and was changed gradually, 
into their methods. We do not believe 
you can do better than employ this 
firm.” 

The second letter: 

“They sqem to get at the conditions 
without upsetting our old system and 
gradually work in their new schemes so 
that we do not feel that we are being 
torn to pieces.” 

A big printing and engraving house: 

“It is needless for us to make any 
statements regarding the value of your 
cost system, but it certainly produces 
results and does everything that you 
claimed it would.” 


140 ] 



WHAT WE DEMAND OF OUR STAFF-MEMBERS 


That is why there is no reason for a 
manufacturer to feel that we are doing 
only what his own executives should be 
able to do. Our activities are fundament¬ 
ally different. We come into your plant 
with none of these routine worries and 
duties to keep us buried in detail. We 
are there to do one thing—to determine 
what methods will aid the business, to 
design these methods—or systems if you 
will—and to install them. 

One client who employed us recently 
put it this way: 

‘‘I believe,” he said, “that I could 
install a planning system myself which 
might be satisfactory and devise the 
proper methods of wage payment, but 
for three years I’ve been trying to find 
time to do it. You w r on’t have any¬ 
thing else to do—so go ahead.” 

Of lesser value than either of the 
two preceding reasons is the “fresh 
viewpoint” which we bring. Some of 
the old time “efficiency engineers” got 
along for years with little to work with 
but this—and they made some startling 
savings, even so. We place little reliance 
upon the fresh viewpoint except as it 
is joined to native ability, technical 
education, far-reaching experience and 
knowledge of methods of others. 

But it is undoubtedly true that to the 
inquiring mind and eye, wasteful meth¬ 
ods are apparent that have been accepted 
by those accustomed to them by long 
usage. Just because a thing has “al¬ 
ways been done that way,” does not 
argue that it is the right way. Literally 
hundreds of such instances have come 
to our attention. In some of them the 
solution was so apparent that even the 
client was surprised when he realized 

[41 ] 


that these very costly and unnecessary 
wastes had been accepted for years by 
his organization. 

But these are merely by-products of 
our work. Usually our greatest value 
to a client is in studying conditions and 
planning and installing methods of con¬ 
trol and management. 

A S OUR work consists in installing 
definite methods and systems and 
not in making scattered, haphazard 
betterments, our personnel is a most 
important factor in our success. 

Mere brilliance or a reputation for 
having made spectacular savings on a 
job or two does not qualify a man for 
our work. Intelligent and educated our 
engineers must be, but to get the best 
results each man must be able to use all 
of the experience and knowledge that 
our organization has acquired in the 
more than fifteen hundred factories we 
have served since 1902. This means that 
each man must go through a long period 
of training in our methods and must do 
all of his work under the close super¬ 
vision of men who are intimately ac¬ 
quainted with every experience we have 
had in our long years of practise. 

To achieve this thorough supervision 
we have a definite plan of organization 
consisting of several operating units, the 
following being typical. These grades 
are listed below in the order of their 
rank and importance: 

Director of installations 

Assistant director of installations 

Supervisors 

Semi-supervisor3 

Installers 

Junior engineers 

(Continued on page 4-3) 


WHAT OUR CLIENTS SAY 


Another underwear company: 

“Answering your inquiry in regard to 
our experience with Miller, Franklin, 
Basset & Company, would say that 
we feel that this organization is splen¬ 
didly equipped to handle factory prob¬ 
lems, and what we like about their or¬ 
ganization is that they have a practical 
style of doing things which does not 
involve a tremendous amount of red- 
tape as is ordinarily insisted upon by 
most organizations which term them¬ 
selves ‘efficiency engineers’.” 

From a builder of steering gears: 

“We have your letter relative to Mil¬ 
ler, Franklin, Basset & Co. and beg 
to advise that the work they did for us 
was done in a satisfactory manner, and 
comprised the departmentalizing of our 
overhead cost.” 

From the same people some years later: 

“This company did very satisfactory 
work for us on two occasions. Their 
work is done without the usual disrup¬ 
tions attendant upon the employment 
of efficiency managers and they are par¬ 
ticularly considerate of the employer’s 
interest before making radical changes 
or recommendations. Our past expe¬ 
rience would lead us to employ them 
should we again have work in their 
line.” 

A lithographer: 

“While the new cost accounting has 
been in operation only a few months, 
we are well satisfied. Their method is 
being used in four or five printing and 
lithographing plants throughout On¬ 
tario.” 


A paper mill: 

“Replying to your inquiry regarding 
work done for us by Miller, Franklin, 
Basset & Company, would say that this 
work was of a special character and per¬ 
fectly satisfactory. We did not go into 
this from a standpoint of efficiency of 
operation in our mill, but more from the 
standpoint of efficiency in cost account- 
mg.” 

A manufacturer of satin quilts and cotton 
damask on two different occasions said: . f 

“In reply to your letter of September 
4th, would state that Miller, Franklin, 
Basset & Company installed for us a 
very complete cost system with which 
we have been very well satisfied, and we 
have no doubt that they would be a 
great benefit to you. 

“We consider that they have done a 
very efficient job here, and we have 
what we consider a very workable cost 
system, although necessarily somewhat 
complicated because of the vast varie¬ 
ties of work which we make. We feel 
that you will be very well satisfied with 
their work.” 

Drygoods , carpets and upholstery: 

“We take this occasion to express our 
commendation on the work done for us 
some time since, and to state that we 
appreciate the thoroughness of the 
work accomplished, and the marked 
courtesy shown in all their dealings 
with us.” 

“Very satisfactory '’ work in a woolen mill: 

“Miller, Franklin Basset & Co. did 
some work for us about nine years ago 
that proved very satisfactory.” 


142 ] 



HOW WE DO OUR WORK FOR A CLIENT 


No man, no matter what his experience, 
can join our industrial engineering 
staff in a position higher than a junior 
engineer, the lowest grade. 

Our men must have had training and 
they must be of such bearing and char¬ 
acter as to inspire confidence in the men 
with and for whom they are working. 

The cleverest man will fail in his effort 
to better conditions in the making of 
which other men have had a part unless 
he can gain and hold respect. Respect 
precedes confidence and confidence is 
essential to the installation of any new 
methods, whether pertaining to materi¬ 
als, men or machines. 

Staff-members are bound to meet 
men in clients’ plants who are opposed 
to new methods and they must get their 
way without causing hard feeling. This 
makes it necessary that every one of our 
men have unusually pleasing personal¬ 
ities and tactful ways. 

We seldom hire a man who has 
worked with another firm of production 
engineers, for we do not want him to 
have pet fads. We prefer, as raw mate¬ 
rial, mechanical engineers who have had 
three or four years’ experience in fac¬ 
tories. This gives us men who know 
factory conditions at first hand and who 
have the point of view of the factory 
man. With open minds, they are ready 
to receive the education we give. 

Promotion comes gradually through 
each grade, and only when we are satis¬ 
fied that a man is able to handle our 
work well. All of our men work under 
the close supervision of a superior. 

Most installations are made by an 
installer, sometimes assisted by a junior. 
But semi-monthly or oftener, the super¬ 


visor in charge visits the job, checks 
up on the progress made and outlines 
further steps. 

The installers do not take the initia¬ 
tive in devising new methods. That is 
the task of the supervisors. Supervisors 
visit installers periodically and are with 
them on the contracts about one-fifth 
of the time. 

All supervisors are profit sharers of 
our company and they therefore may be 
termed partners. Backed by our records 
of performance and accomplishment in 
over fifteen hundred factories—in many 
of which they themselves have worked— 
these partners plan the new methods 
needed by a client. They confer with 
the client to secure sanction for the 
changes after showing the securable 
benefits. They then instruct the in¬ 
stallers as to which methods they are 
to employ. 

Once a month at least the director or 
the assistant director of installations— 
both of whom are partners and former 
supervisors—goes to the client’s plant 
to survey the work of the installers. 

Our aim is to give every man the 
benefit of every other man’s experience, 
and each man’s work is planned so that 
he will not only have a wide experience 
installing all of our methods but so that 
he will have experience in every industry. 

A principal duty of the director and 
assistant director of installations is to 
make the experience of every individ¬ 
ual on our staff the common property of 
all our staff-members. 

They go from plant to plant super¬ 
vising the work and helping, in the light 
of their long and wide experience, to 

solve problems. This enables them to 

(Continued on page //5) 


[43 ] 


WHAT OUR CLIENTS SAY 


Bleaching and dyeing: 

“In reply to your favor of the 28th 
inst., Miller, Franklin, Basset & Co. in¬ 
stalled a cost system in our plant about 
three years ago. We are very well 
pleased with the work they did and 
can highly recommend their services.’' 

A maker of warps, in Maine, wrote: 

“Miller, Franklin, Basset & Co. put a 
cost system into our plant several years 
ago. It costs us little to run, is free 
from a lot of red tape, and checks up 
not only our mill but office accounts, 
putting the cost where it belongs.” 

Steel and iron products , hardware and mill 
supplies: 

“We have your letter and beg to say 
that Miller, Franklin, Basset and Com¬ 
pany did do some work for us eight or 
ten years ago, and we were very much 
pleased with the services rendered at 
that time.” 

Drop forgings: 

“About ten years ago, Miller, Frank¬ 
lin, Basset & Co., did some work for 
us in installing a cost system, and we 
feel that the service they rendered us 
was of a very satisfactory character and 
of much assistance to us.” 

Ventilating and drying equipment: 

“Replying to your letter of Septem¬ 
ber the 4th, concerning Miller, Franklin, 
Basset & Company, would say that this 
company recently completed the in¬ 
stallation of a production system for us, 
and, so far as we have been able to 
judge, the system is a good one, and is 
entirely satisfactory to us. 


Still another knilgoods job: 

“Can only say that everything they 
have done has been extremely satisfac¬ 
tory. They have installed a cost and 
production system in our plant, which 
is working in A Number 1 order, giving 
us a financial statement monthly. We 
are sure that you will be very well sat¬ 
isfied with any service they may render 
you.” 

Cotton warps: 

“Replying to your letter of Novem¬ 
ber 8th, we beg to advise you that we 
employed the services of Miller, Frank¬ 
lin, Basset and Company, and we have 
a very good opinion of them and are 
confident that the system they installed 
is very accurate and serviceable.'' 

Bank an d safe-deposit vaults and locks: 

“Replying to your favor of the 7th 
instant, in regard to Miller, Franklin, 
Basset and Company, we wish to ad¬ 
vise that they installed a cost system 
for us which we are now using and 
which we find very satisfactory.” 

A small paper-box maker says: 

“Miller, Franklin, Basset & Co. in¬ 
stalled a cost system for us. We are 
well satisfied with it and believe that 
they fully understand their work.” 

A brass and iron goods manufacturer says 
of us: 

“It is the writer’s opinion that they 
are a very capable firm of high standing; 
they understand their work and are 
very conscientious in what they do. 
We have no hesitancy in recommending 
them to you.” 






HOW WE DO OUR WORK FOR A CLIENT 


avoid dangers which might be hidden to 
another staff-member, and to apply 
quickly a method which they have seen 
work out well elsewhere, under similiar 
conditions. 

Through the efforts of these partners 
we bring to bear on the client’s problem 
not merely the experience of the two or 
three men we put in his plant, but the 
experience of every one of our twenty- 
four industrial engineers. 

Our continuous success since 1902 is 
due not only to the high quality of our 
personnel but in no small degree to our 
method of work, which gets results with¬ 
out antagonizing the client’s employees. 

Our profession has at times suffered 
through engineers who have gone into 
plants, uprooted time-honored methods 
right and left, and antagonized both 
management and men. Often, too, al¬ 
though the methods newly installed 
may be right, they do not continue to 
function after the engineer who installed 
them has left the plant. That is what 
comes from trying to inject new meth¬ 
ods into an organization. 

The installations we make remain in 
successful operation after we have gone, 
because we do the work through your 
own organization. 

At first, when making an investiga¬ 
tion, we are merely observers asking 
questions here and there, but in no way 
interfering with the regular routine of 
your plant. 

When the investigational period is 
over and the recommendations we have 
made are approved by the chief execu¬ 
tive, we take up the first step recom¬ 
mended and work it out by ourselves. 
This serves as a precedent to be followed. 


Then we instruct the man in the 
client’s organization to whom the new 
work will naturally fall, show him how 
we carried out the first step, and make 
this new work a part of his daily duties. 

Then in the same way we take up the 
next step, always continuing to oversee 
the previous steps until each one in 
the organization is perfectly familiar 
with the new duties to be performed. 

In fact, much of the work of actual 
installation is done by those in the 
organization who will later have to 
operate the system. This makes them 
thoroughly acquainted not only with 
the “how” but with the “why” of the 
methods before they have to assume the 
responsibility for operating them. 

Where possible, we always make it a 
point, when new positions have to be 
created, to take the logical candidate 
from the client’s staff; the attainment of 
the new position is thus so gradual that 
jealousy and ill-feeling do not result. 

We do not inject our methods—we 
get the organization to absorb them, 
and in our installation work there are 
none of what we have heard referred to 
as “hell-periods.” We are always in 
the background; we have no authority 
and give no orders, and when our work 
is completed, and we leave the plant, 
we leave no hole in the organization as 
we never became part of it. 

O BVIOUSLY, such an outline of our 
work as we have attempted to give 
here can do no more than touch the 
high spots. Actually, there is no prob¬ 
lem or factor in manufacturing, from 
designing the plant to selling the prod¬ 
uct, with which we do not deal. 

(Continued on page 47) 


[ 45 ] 


WHAT OUR CLIENTS SAY 



A manufacturer of envelopes: 

“Your favor of the 1st received and 
in reference to Miller, Franklin, Bas¬ 
set and Company, would say that about 
ten years ago, they did some work for 
us and it was entirely satisfactory. We 
have followed the lines that they laid 
out at that time ever since, and we find 
that everything has come out right.” 

Textile: 

“Miller, Franklin, Basset & Company 
did work for us about seven years ago 
and we adopted practically all they ad¬ 
vised. We would say that we would not 
feel able to manufacture in these days 
without the system that we installed at 
that time.” 

Printing and lithographing: 

“We have your letter of the 8th. It is 
certainly a pleasure to us to recommend 
the service of Miller, Franklin, Basset & 
Co. of New York City. The cost system 
they installed last year has shown our 
profits quite satisfactorily.” 

An automobile manufacturer: 

“The services rendered by Miller, 
Franklin, Basset & Company several 
years ago were more than satisfactory, 
and we believe that the money we paid 
them was one of the best investments 
we ever made. In other words, they 
gave us an accurate system of arriving 
at our costs, although before we em¬ 
ployed them, we thought we had a good 
system at that.” 

Shaving and toilet soaps: 

“We found them at the inception of 
our work more willing to adjust them¬ 


selves to our conditions than other 
people in the same line of business had 
been. They sent two very clever men 
here to work out the details of our cost 
system and the system installed has been 
working satisfactorily, and we are con¬ 
tinuing to use it with profit.” 

A later letter: 

“We are very pleased at any time to 
recommend your cost system to any one 
who is interested in it. We consider it 
one of the best cost systems that is in 
existence today and would say that we 
consider it the vital point of our busi¬ 
ness for without it we would not know 
where we are from month to month 
or week to week. We cannot see how 
any growing concern can get along 
without it.” V 

An entirely voluntary letter written to 
us by a big manufacturer of asbestos 
textiles: 

“We owe you an apology for not ac¬ 
knowledging receipt of the report, but 
we take this opportunity of expressing 
our appreciation of the good work which 
your engineers did while here. 

“We are delighted with this report 
and consider it the first real work of 
this description that we have ever had 
done. We have in the past spent con¬ 
siderable money with the various con¬ 
cerns in our efforts to conduct our bus¬ 
iness along scientific lines, but have not 
gotten anything like this. 

“We cannot praise your engineers too 
highly for the manner in which they 
handled the whole situation, in spite of 
the many discouragements which they 
met with in the work.” 


[ 46 ] 







THE REASONS FOR OUR SUCCESS 


Production, as we have said, affects 
all of the activities of a business, from 
finance to marketing, and therefore we, 
as production engineers, must be and 
are prepared to deal with all of the 
client’s problems. 

That is why we insist that our men 
be more than engineers specializing in 
methods and systems. Methods and 
systems are the tools which enable the 
manufacturer to make profits. It is 
profits that our clients are interested 
in and therefore we must help them to 
make profits. Our staff-members are 
chosen and trained to apply the test of 
profits to all of their work. They 
have been taught engineering methods 
which make for profits. 

They do not go into a plant with 
the offensive, superior know-it-all air 
which, too often, is the pose of engi¬ 
neers. Our engineers do not assume that 


the owner knows nothing about his bus¬ 
iness and that it is their job to show 
him how to run it. 

Rather, they are business men—busi¬ 
ness men who have specialized knowl¬ 
edge of management problems and who 
look at your problems just as you do. 

Whether a client will be able to profit 
from our work depends as much upon 
how we do our work as upon what we do. 
Therefore it is of primary importance 
that we do not hinder the normal 
operation of his business while we 
are in his plant. We endeavor to make 
changes so gradually that they are al¬ 
most imperceptible. 

That we have been successful in 
making profits for clients since we 
started in 1902 is shown by the state¬ 
ments throughout this book, chosen 
from letters written by more than fif¬ 
teen hundred manufacturers. 



[ 47 ] 














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